Motilal Oswal's research report onICICI Prudential Life Insurance
ICICI Prudential Life Insurance (IPRU) reported APE of INR28b (in line), reflecting growth of 16% YoY. For 1HFY27, APE grew 15% YoY, supported by strong 40% YoY growth in the protection business. VNB margin for the quarter stood at 25.4% vs our estimate of 25.5% and 24.5% in 2QFY26. For 1HFY27, VNB grew 22% YoY and VNB margin expanded 150bp YoY to 26%, backed by the product mix shift. For 2QFY27, IPRU’s shareholder PAT grew 27% YoY to INR3.7b. EV at the end of 1HFY27 was at INR566.7b, growing 12% YoY. Cost-to-premium ratio (ex-GST) declined to 18.3% in 1HFY27, reflecting disciplined cost management and readiness to navigate possible regulatory recalibrations. We have maintained our estimates following the 2QFY27 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.
We reiterate our BUY rating with a revised TP of INR540 (based on 1.2x FY28E EV).
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ICICI Prudential Life Insurance - 1410026 - moti
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