Buy ICICI Prudential Life Insurance Company; target of Rs 920: Sharekhan

Sharekhan's research report on ICICI Prudential Life Insurance Company

Higher APE growth from agency/direct channel is leading to market share gains and driving strong APE growth (higher than industry) for the third consecutive quarter albeit on a low base. Management expects to continue to grow APE ahead of the industry, as it has made considerable efforts to improve its multi-channel and multi-product approach to optimise growth. A lower share of non-par reduces the impact of revised surrender penalty guidelines on VNB margins. VNB growth would largely be a function of product mix, thus VNB margin would remain range bound.

Outlook

We maintain BUY with a revised PT of Rs. 920, considering the increase in the multiple, given healthy growth outlook and rollover. The stock trades at 2.3x/2.0x/1.8x its FY2025E/FY2026E/FY2027E EVPS.