ICICI Prudential Life Insurance shares fall 4% after Q1 results. Should you buy, sell or hold?
ADVERTISEMENT However, operating metrics reflected mixed trends. The Value of New Business (VNB) declined marginally to Rs 457 crore, down from Rs 472 crore a year ago. VNB margin, however, improved to 24.5% from 24%. Annualised Premium Equivalent (APE) fell 5% YoY to Rs 1,864 crore, largely due to a 9.5% drop in savings APE.
On the other hand, protection APE rose 15.2% to Rs 409 crore, with retail protection surging 24.1% to Rs 139 crore, indicating strong traction in the high-margin segment. New business premium increased 6.4% to Rs 4,012 crore, while total premium collections rose 8.1% to Rs 8,954 crore. Assets under management (AUM) stood at Rs 3.24 lakh crore, up 5.1% from the previous year.
Antique has maintained a 'Buy' rating on ICICI Prudential Life Insurance, with an unchanged target price of Rs 715.The brokerage noted that the company's favourable product mix, led by protection and non-linked savings products, supports healthy margins. It expects ICICI Prudential to grow APE ahead of the industry in FY26. Antique projects a FY25–27 CAGR of 10% for APE, 13% for VNB, and 12% for Embedded Value (EV). While near-term growth may remain volatile due to base effects, the improving product mix and expanding distribution network are seen as positive for medium-term prospects.
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Nuvama has maintained a 'Buy' rating on ICICI Prudential Life and raised the target price to Rs 770 from Rs 760.
ADVERTISEMENT The brokerage highlighted that while headline growth remains weak, the company's protection segment delivered strong performance. Despite a margin beat, the Value of New Business (VNB) declined by 3%. Nuvama has revised its margin estimates for APE/VNB for FY26E, FY27E, and FY28E to -0.1%, +0.8%, and +2.1% respectively.
ADVERTISEMENT Motilal Oswal reiterated a 'Buy' with a target price of Rs 780.The brokerage said APE and VNB were largely in line, and the margin expanded to 24.5%. It expects operating leverage, cost optimisation, and traction in non-linked products to drive profitability. It retained APE growth estimates for FY26/FY27 and raised VNB margin estimates by 100 basis points for both years.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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