ICICI Prudential in focus after mixed Q4; margin surprise cushions below-par growth

The company has a Dayton plant about to be commercialized, along with an already existing Puerto Rico plant, which it can commercialize soon with short notice. The company believes it is well prepared to meet upcoming challenges due to proposed tariffs.

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26 Aug, 2025 12:21

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Shares of ICICI Prudential Life Insurance were sharply higher by over 4 percent on April 16 following a mixed set of numbers by the life insurer in its March quarter results, extending the momentum seen in the previous trading session.

For the quarter under review, ICICI Pru's Annualised Premium Equivalent (APE) stood at Rs 3,502 crore while its Value of New Business (VNB) came in at Rs 795 crore. The company's VNB margin improved to 22.7 percent. On a year-on-year basis, APE (Retail and Direct) grew 3.1 percent, while VNB rose 2.5 percent from the March quarter last year.

Total premium income for FY25 rose 13.2 percent to Rs 48,951 crore. Retail Weighted Received Premium (RWRP) grew 15.2 percent, supported by strong performance across both proprietary and partner channels.

Operational metrics remained healthy, with the 13th-month persistency ratio at 89.1 percent while the 49th-month ratio came in at 69.5 percent. The company also reported a high claim settlement ratio of 99.3 percent and maintained a robust solvency ratio of 212.2 percent — well above the regulatory requirement of 150 percent.

Following the Q4FY25 results, brokerage firm Avendus Sparks cut its recommendation on the stock to 'reduce' from 'add' with a target price of Rs 605, indicating a potential upside of 6.7 percent.

Motilal Oswal has reiterated a 'buy' call on the stock with a target price of Rs 2,200 following its earnings release. Goldman Sachs rated the stock 'neutral' while Berstein called the stock a 'market perform'. Overall, about 22 analysts are holding a 'buy' rating on the stock with 10 others calling 'hold' and 2 rating 'sell'.

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