Buy ICICI Prudential Life Insurance; target of Rs 670: Sharekhan

Sharekhan's research report on ICICI Prudential Life Insurance

ICICI Pru reported a ~26% y-o-y decline in VNB (below estimates). VNB margins stood at 21.5% versus 32% y-o-y/22.9% q-o-q. Adverse product mix and higher cost hit VNB margins. APE rose 10% y-o-y (in-line) despite higher base in last year, mainly led by shifting product/channel mix, supported by new product launches.

Outlook

We maintain a Buy with a revised PT of Rs. 670 rolling forward valuation to FY26. Stock trades at 1.7x/1.5x its FY2025E/FY2026E EVPS.