Religare Retail Research report on ICICI Prudential Life Insurance Company
ICICI Prudential reported Q2FY24 net premium income growth of 4.6% YoY to Rs 10,022 Cr which was led by single premium which grew by 7% YoY to Rs 3,005 Cr. Annualized Premium Equivalent (APE) increased by 3% YoY to Rs 2,063 Cr remaining slightly below consensus. Net commission during the quarter increased by 87% YoY to Rs 771 Cr due to the regulatory norms leading to increase in overall cost ratio to 26.2% from 21.6% in Q2FY23. Owing to the increased costs, shareholder’s account surplus/ (deficit) saw a de-growth of 42% YoY to Rs 301 Cr.
Outlook
However, on the margin front cautiousness continues as it saw a dip during the quarter. On financial front, we expect APE/NBP/VNB to grow at 19% each CAGR over FY23-25E but margin growth slightly revised downwards to 32% for FY25E. Thus, maintaining a Buy rating our target price is revised slightly lower to Rs 640 valuing the company at 1.8x of its FY25E embedded value (EV) per share.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
ICICI Prudential Life Insurance Company - 18 - 10-2023 - reli
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
