Sharekhan's research report on ICICI Prudential Life Insurance
ICICI Prudential Life (IPRU) reported strong 36% y-o-y growth in VNB. VNB margin expanded to 32% in Q4FY2023 (up 226 bps y-o-y). APE grew by 27% y-o-y. This was mainly led by higher business volumes from sale of higher ticket value non-linked products in the last two months of the quarter, ahead of the change in union budgetary provision. The share of non-linked business (par and non-par) increased to ~51% in Q4FY2023 vs. ~29% in Q3FY2023 in overall APE. Non-linked, annuity, and retail protection APE grew by 105%, 102%, and 27% y-o-y in Q4FY2023, respectively. ICICI Bank continues to go slow in insurance distribution. Overall, ICICI Banks contribution has declined to 9% in Q4FY2023 in the APE mix.
Outlook
The stock currently trades at 1.6x/1.4x its FY2024E/FY2025E EVPS. Valuations are inexpensive. We maintain Buy with an unchanged PT of Rs. 600.
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