21 Apr 2023 , 11:22 AM
ICICI Prudential Life Insurance Company (IPRU) reported Q4FY23 results, with 26% YoY APE growth led by 104% growth in Non-linked and Annuities; while ULIP and Protection saw decline of 24%/1% YoY. Protection was buoyed by a sharp pickup in Retail protection (28% YoY); Group saw 7% YoY decline. Banca channel declined 8%, as the ICICI Bank channel (-43% YoY) contribution dropped to 8.8% in 4Q versus ~25% in FY22. VNB margin saw 230 basis points YoY expansion to 32%, led by higher share of Protection and Non-par savings mix – hence, VNB grew 36% YoY. Despite more than doubling their VNB over FY19-23, as guided, management remains confident of healthy VNB growth going forward too.
Analysts at IIFL Capital Services believe IPRU’s product and distribution mix are becoming balanced. With the ramp-down from ICICI Bank channel largely behind, IPRU could start delivering consistent double-digit APE growth. Analysts at IIFL Capital Services are forecasting 11%/13% APE/VNB CAGR over FY23-25. They have raised their 12-month Target Price to Rs 610 (from Rs 570) on higher VNB growth. The stock is trading attractively at 1.4x on FY25 estimated P/EV, at trough valuations.
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.