ICICI Prudential Life Insurance may move to Rs 575: AnandRathi

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26 Aug, 2025 12:21

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ICICI Prudential Life Insurance reported 9.2% YoY increase in gross premium to Rs 82.64 billion in Q3FY20, primarily due to growth in new business premium which registered a growth of 18.7% YoY.

Growth in renewal premium was 4.4% y/y. Net premium income (net of reinsurance) increased 8.7% y/y Rs 81.31 billion in the quarter. PAT improved 1.8% y/y to Rs 3.02 billion.

As of September 30, 2019, AUM stood at Rs 1,655.12 billion, increasing from Rs 1,461.29 billion as of September 30, 2018.

Protection APE which grew by around 87% y/y in H1-FY20 driven by growth in both retail as well as group protection businesses, now accounts for 14.8% of the company’s overall APE, up from 9.3% at the end of FY19.

Value of New Business grew by 20.2% to Rs 7.09 billion in H1-FY20, compared to Rs 5.9 billion for the same period last year. VNB margin was 21% in in H1-FY20, compared to 17.5% in H1-FY19.

Management seems reasonable with the continued investments to grow protection business and noted that it remains focused on cost optimization rather than cost cutting and would continue to leverage technology to improve cost ratios.

The company remains focused on diversifying within the product mix and expanding its distribution network with continued investments across channels such as agency, bancassurance partnerships, proprietary sales force, corporate agents and brokers. Management reiterated its guidance of doubling FY19 VNB in three to four years.

We believe company is well positioned for recovery and growth given its focus on diversifying product mix with increasing share of margin accretive protection business, improving VNB, ongoing investments in its multi-channel distribution platform, cost management efforts and favorable macro traits in the domestic life insurance industry.

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