ICICI Prudential Life Q4 Results Review: Motilal Oswal Maintains 'Buy' But Lowers Target Price —Here's Why

ICICI Prudential Life Insurance's VNB margin has been under pressure even before Q4 FY25, mainly owing to a shift in the product mix (higher share of ULIPs). However, the revival of non-linked business and momentum in higher-margin ULIP products have led to margin expansion in Q4 FY25.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 slight decline of 3% YoY in new business annual premium equivalent to Rs 35 billion (in line) in Q4 FY25. For FY25, APE grew 15% YoY to Rs 104.1 billion. Value of new business margin for the quarter stood at 22.7% versus our estimate of 21.9% (21.5% in Q4 FY24). Absolute VNB grew 2% YoY to Rs 8 billion (in line). For FY25, VNB was at Rs 23.7 billion (+6%) and margin stood at 22.8% versus 24.6% in FY24. For Q4 FY25, ICICI Prudential reported a 122% YoY jump in shareholder PAT to Rs 3.9 billion (32% beat). For FY25, PAT grew 39% YoY to Rs 11.9 billion. Management aims to achieve higher VNB growth compared to APE growth, driven by-improvement in protection segment margin by repricing group term products, andsustaining higher margins in ULIPs through rider attachments and higher sum insured. While there is no specific APE growth guidance, the aim is to grow higher than estimated industry growth of 15% in FY26.We trim our APE growth estimates for FY26 from 18% to 14% while retaining FY27E growth at 16%. For VNB margins, we build in about 70bp/50bp expansion in FY26/FY27 to 23.5%/24% due to better ULIP and protection margins. Reiterate Buy with a target price of Rs 680 (based on 1.6x FY27E EV)..Click on the attachment to read the full report:.ICICI Prudential Life Insurance Q4 Results: Profit Rises 122%, Net Premium Income Up 10.7%.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: Motilal Oswal Maintains 'Buy' But Lowers Target Price —Here's Why

ICICI Prudential's Q4 APE and value of new business were in line; margin expands to 22.7%, Motilal Oswal reiterates Buy with a target price of Rs 680 (based on 1.6x FY27E EV).

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