HDFC Securities' research report on ICICI Prudential Life
9MFY19 VNB margins declined to 17.0% (-50bps vs. 1HFY19 and +50bps vs. FY18) on account of 9MFY19 APE decline of 4.2% YoY to Rs 53.4bn. Management stated that margins declined despite costs being within budget due to unexpected APE decline (2.1% YoY) in 3QFY19. This resulted in 9MFY19 cost/TWRP ratio increasing to 15.4% (+140bps YoY). We had highlighted high margin and growth expectations in our 1Q and 2Q earnings releases.
Outlook
We maintain BUY with a lowered TP of Rs 380 (FY20 EV + 18.2x FY21E VNB).
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