Sumit Bilgaiyan
ICICI Prudential Life Insurance Company reported VNB margin of 18.9% in 4QFY18 as compared to 17.5% in 3QFY18 from 10.1% in 4QFY17 mainly on account of new ULIP products which are launched in June 2017 have higher margins and higher share of protection business.
Share of protection business increased to 5.7% in FY18 from 3.9% in FY2017. ULIP declined to 82% from 84% of total APE. Agency and corporate agents gained share from bancassurance and direct business.
Expense/APE was up 50 bps YoY to 13.5%. Solvency ratio dropped to 252% from 281% YoY. Improved operating matrix, mostly on account of better persistency led to high operating RoEV.
ICICI Pru reported a 16% dip in net profit in 4QFY18, primarily on account of higher new business strain resulting from new business growth. We have a buy rating with target of Rs 530.
Disclaimer: The author is Founder of Equity99. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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!
