ICICI Life's value of new business margin for the quarter stood at 25.4% vs the brokerage's estimate of 25.5% and 24.5% in Q2 FY26. For H1 FY27, VNB grew 22% YoY and VNB margin expanded 150bp YoY to 26%, backed by the product mix shift. ICICI Prudential Life Insurance's reported annual premium equivalent of Rs 2,800 crore came inline with the brokerage's estimate, reflecting growth of 16% YoY.
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Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has reiterated its Buy rating on ICICI Life Insurance Ltd., following the insurance company's September-quarter ending results, with a revised target price of R 540, based on 1.2 times FY28E embedded value.
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ICICI Prudential Life Insurance's reported annual premium equivalent of Rs 2,800 crore came inline with the brokerage's estimate, reflecting growth of 16% YoY.
For H1 FY27, APE grew 15% YoY, supported by strong 40% YoY growth in the protection business.
Value of new business margin for the quarter stood at 25.4% vs the brokerage's estimate of 25.5% and 24.5% in Q2 FY26. For H1 FY27, VNB grew 22% YoY and VNB margin expanded 150bp YoY to 26%, backed by the product mix shift.
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For Q2 FY27, ICICI Life's shareholder PAT grew 27% YoY to Rs 370 croreo. EV at the end of H1 FY27 was at Rs 56,670 crore, growing 12% YoY.
Valuation and view
ICICI Life's continued efforts toward the product mix shift and increasing retail protection contribution have resulted in continued YoY expansion in VNB margin. In the long term, the company's profitability will be supported by sustainable growth momentum and increased traction of non-linked products.
Motilal Oswal has maintained its estimates following the Q2 FY27 performance, with operating RoEV projected at 12-13%.
Key monitorables include regulatory implementations across distribution, IFRS, and risk-based solvency, as well as the impact of a rising interest rate environment.
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