Buy ICICI Prudential Life Insurance; target of Rs 780: Motilal Oswal

Motilal Oswal is bullish on ICICI Prudential Life Insurance recommended buy rating on the stock with a target price of Rs 780 in its research report dated January 22, 2025.

Broker Research

January 22, 2025 / 12:29 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on ICICI Prudential Life Insurance

ICICI Prudential Life Insurance (IPRU) reported new business APE growth of 28% YoY to INR24.4b (6% miss). For 9MFY25, APE grew 28% YoY to INR69.1b. VNB margin for the quarter stood at 21.2% vs. our estimate of 23%. Absolute VNB grew 19% YoY to INR 5.2b (13% miss). For 3QFY25, IPRU reported a 43% YoY growth in shareholder PAT to INR3.2b (27% beat). For 9MFY25, it reported a PAT of INR8b (+18% YoY). Management is confident in its well-diversified distribution network along with multiple levers available to achieve alpha over the market in terms of premium growth. The ongoing focus would remain on VNB growth, which will primarily depend on APE growth. Considering IPRU’s 3Q performance, we cut our APE growth and VNB margin estimates.

Outlook

For FY25, we expect new business APE/VNB/PAT to grow 23%/ 15%/37% YoY to INR111.5b/INR25.6b/INR11.7b. Going forward, the company’s ability to sustain strong premium growth and improve VNB margin will be crucial. Reiterate BUY with a TP of INR780 (based on 1.7x Sept’26E EV).

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