ICICI Prudential Life Q3 Results Review - VNB Margin Hit Due To Adverse Product Mix: 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.ICICI Prudential Life Insurance Company Ltd. reported a 4.7% YoY growth in annual premium equivalent (9.5% higher than estimated) to Rs 19.1 billion in Q3 FY24. In Q3 FY24, protection/unit linked insurance plan segments rose 5.3%/8.9% YoY but the group segment declined 15.5% YoY. Value of new business declined 29% YoY to Rs 5.4 billion (15% miss), due to a moderation in margins. VNB margin for the quarter stood at 22.9% (-510 bp QoQ) versus our estimate of 29.5%. For nine months-FY24, APE stood at Rs 54.3 billion and VNB was at Rs 14.5 billion, with a VNB margin of 26.7%. Considering the Q3 FY24 performance, we have cut our APE/VNB margin for FY24E and FY25E. We expect ICICI Prudential to deliver a 6% compound annual growth rate in VNB over FY23- 26. Going forward, premium growth and expansion of VNB margin will be the key drivers for the re-rating of the stock. We note that the one-year forward price/embedded value for ICICI Prudential has declined to 1.5 times currently from 1.8 times in June 2023. We reiterate our 'Buy' rating with a target price of Rs 580 (based on 1.5 times September-25E EV)..Click on the attachment to read the full report:.ICICI Prudential Hit 10% Lower Circuit After Q3 Results.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 Q3 Results Review - VNB Margin Hit Due To Adverse Product Mix: Motilal Oswal

Guides for a double-digit growth in Q4 FY24

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