Prabhudas Lilladher's research report onICICI Prudential Life Insurance Company
Q2 APE growth remained healthy at 15.5% YoY led by sustained traction in annuity and protection. ULIP growth was subdued amid market volatility, while non-linked savings saw a recovery with NPAR contributing 40% of the mix. We build APE growth of 9%/8% for FY27E/FY28E despite a resilient H1 performance, factoring in a high base in H2FY26 and the potential impact of the commission consultation paper, respectively. VNB margin improved 100bps YoY to 25.5% in Q2FY27, supported by a favourable product mix and operating efficiencies. The shift towards margin-accretive products, along with cost optimisation is expected to support sustained margin improvement.
We raise our FY27E/FY28E VNB margin estimates by 20/30bps. We roll-forward our valuation to FY29E and value IPRU using the appraisal value framework at 1.4x FY29E P/EV (vs. 1.5x earlier), arriving at a TP of INR725. Valuation remains undemanding. Reiterate BUY.
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ICICI Prudential Life Insurance - 1410026 - prabhu
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