Sharekhan's research report on ICICI Prudential Life Insurance Company
ICICI Prudential Life reported 20% y-o-y growth in VNB. VNB margin expanded to 33.9% in Q3FY2023 (up 722 bps y-o-y). This was driven by change in product mix. Share of non-linked business (par and non-par) increased to 29% in Q3FY2023 from 25% in Q3FY2022. ULIP was down to 43% in Q3FY2023 versus 53% in Q3FY2022. Increase in annuity and group protection also contributed to margin expansion. APE was down by 6% y-o-y due to weak ULIP growth even as non- linked savings and protection businesses grew strongly. Also, ICICI bank channel continued to drag APE growth, ex-ICICI, growth was moderate at 12% y-o-y.
Outlook
We believe the company is expected to deliver 13% CAGR in VNB over FY2022-FY2025E. The stock currently trades at 1.9x/1.7x/ 1.4x its FY2023E/FY2024E/FY2025E EVPS. Valuations are inexpensive. We maintain Buy with an revised PT of Rs. 600.
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ICICI Prudential Life Insurance Company - 30 -01-2023 - khan
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