ICICI Prudential Life Q4 Results Review - Higher Costs, Adverse Product Mix Impact New Business: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.In Q4 FY24, ICICI Prudential Life Insurance Ltd. reported 9.6% YoY growth in annual premium equivalent to Rs 36.16 billion. The protection and ex-unit linked insurance plan individual savings segments declined YoY by 4.6% and 19.9%, respectively. ULIPs grew 77% YoY. Value of new business declined 26% YoY to Rs 7.8 billion (19% miss), due to a sharp correction in margins to 21.5% (down 140 bp QoQ) versus our estimate of 26%. In FY24, APE stood at Rs 90.5 billion (4.7% YoY) and VNB at Rs 22.3 billion (-20% YoY). VNB margin for FY24 stood at 24.6% (32% for FY23). Considering the Q4 performance, we have cut our estimates for APE and VNB margin for FY25 and FY26. We expect ICICI Life to deliver an 18% compound annual growth rate in VNB over FY24-26. Going ahead, the company’s ability to sustain strong premium growth and VNB margins will be vital for re-rating of the stock. Retain Buy with a target price of Rs 700 (based on 1.7 times Mar’26E enterprise value)..Click on the attachment to read the full report:.ICICI Prudential Life Q4 Net Profit Down 26% To Rs 174 Crore.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Prudential Life Q4 Results Review - Higher Costs, Adverse Product Mix Impact New Business: Motilal Oswal

Guides APE growth in line with industry and steady VNB margins

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