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Economic Times
2 hours ago
- Business
- Economic Times
ICICI Prudential Life Insurance shares fall 4% after Q1 results. Should you buy, sell or hold?
Shares of ICICI Prudential Life Insurance fell 4% to Rs 643 in Wednesday's trade on the BSE, even as the insurer reported a 34.2% year-on-year rise in net profit to Rs 302 crore for the June quarter. The profit growth was driven by lower new business strain and higher investment income from shareholder funds. 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 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. ADVERTISEMENT 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 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) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
3 hours ago
- Business
- Business Standard
ICICI Prudential shares drop 3% as analysts cut APE estimates post Q1
Shares of ICICI Prudential Life Insurance slipped over 3 per cent on Wednesday after analysts cut Annualised Premium Equivalent (APE) estimates after the insurer reported a 34 per cent jump in net profit in the June quarter. The insurer's stock fell as much as 3.79 per cent during the day to ₹644.2 per share, the biggest intraday fall since June 3 this year. The stock pared some losses to trade 2.2 per cent lower at ₹654 apiece, compared to a 0.13 per cent decline in Nifty 50 as of 9:50 AM. Shares of the company fell for the second straight day on Wednesday and currently trade at 11 times the average 30-day trading volume, according to Bloomberg. The counter has risen 0.2 per cent this year, compared to a 6.3 per cent advance in the benchmark Nifty 50. ICICI Prudential has a total market capitalisation of ₹94,905.26 crore. Track LIVE Stock Market Updates Here ICICI Prudential Q1 results The company's net profit increased 34 per cent to ₹302 crore in the first quarter of FY26 (Q1FY26) from ₹225.4 crore a year ago. The insurer's net premium income grew by nearly 8 per cent year-on-year (Y-o-Y) to ₹8,503 crore. However, the annualised premium equivalent (APE) slipped 5 per cent Y-o-Y to ₹1,864 crore. APE is the sum of annualised first-year regular premiums, plus 10 per cent weighted single premiums. The company also reported a contraction in VNB margin to 24.5 per cent in Q1 FY26. In Q1FY26, the insurer's solvency ratio stood at 212 per cent against 187.9 per cent in the year-ago period. Its persistency ratio remained healthy with the 13th-month persistency ratio at 80.8 per cent as against 85.7 per cent. Analysts take on ICICI Prudential's results Centrum Broking said that ICICI Prudential Life Insurance posted a subdued first quarter, with APE declining 5 per cent Y-o-Y, largely due to the base effect and weak demand for linked products. While the retail protection business remained strong, the credit life segment underperformed amid a sluggish microfinance sector. As a result, Centrum has trimmed its APE growth estimates by 2 per cent for 2025-26 and 3 per cent for 2026-27. The brokerage introduced forecasts for 2027-28, projecting a 13 per cent compound annual growth rate (CAGR) in APE over 2024-25 to 2027-28. Centrum raised its target price to ₹725 from ₹680 per share and maintained its 'Add' rating. Antique Stock Broking has lowered its APE estimates by 2 per cent for FY26-27, citing a muted first quarter. This comes even as the company aims to grow APE ahead of the industry average in FY26, with a focus on expanding the absolute VNB. Antique has reiterated its 'Buy' rating with a target price of ₹715 per share. Nuvama Institutional Equities has retained its 'Buy' rating and raised its target price to ₹770 from ₹760. Total APE declined 5 per cent Y-o-Y. However, group APE rose 18.9 per cent, supported by a strong 53.7 per cent jump in the group savings segment, it noted. Despite the margin improvement, VNB fell 3.2 per cent Y-o-Y, marginally below estimates. Nuvama has fine-tuned its VNB estimates for FY26-28, adjusting them by (-)0.1 per cent, (+) 0.8 per cent, and (+) 2.1 per cent, respectively.
Business Upturn
16-06-2025
- Business
- Business Upturn
Stocks in focus on June 16: HDFC Bank, Indian Hotels, Indigo, Max Financial, Ambuja, Persistent, GMR Airport among top brokerage calls today
Here are the key brokerage updates and fund house recommendations that could impact stock movements in today's trade: Jefferies Indian Hotels: Maintains Buy rating, target price ₹980/share HDFC Bank: Maintains Buy rating, target price ₹2,380/share IndiGo: Maintains Buy rating, target price ₹6,300/share Max Financial: Maintains Buy rating, raises target price to ₹1,830/share GMR Airports: Maintains Buy rating, target price ₹100/share Ambuja Cements: Maintains Buy rating, target price ₹700/share BSE: Maintains Hold rating, raises target price to ₹2,900/share Sai Life Sciences: Maintains Hold rating, target price ₹800/share HDFC Bank (second update): Maintains Buy rating, target price ₹2,200/share Macquarie Persistent Systems: Maintains Outperform rating, target price ₹7,330/share Antique Stock Broking HDFC Life: Management reiterated goals to grow APE ahead of the industry and double VNB every 4–4.5 years UBS Sun Pharma: Maintains Buy rating, target price ₹2,450/share JP Morgan HDFC AMC: Downgrades to Neutral , target price ₹5,000/share Kotak Institutional Equities NMDC: Maintains Sell rating, target price ₹55/share Citi NMDC: Maintains Sell rating, target price ₹60/share IndusInd Bank: Maintains Sell rating, target price ₹700/share Disclaimer: The brokerage views and investment recommendations mentioned above are their own and do not reflect the opinion of this publication. Investors are advised to consult certified financial advisors before making any investment decisions. Ahmedabad Plane Crash News desk at
United News of India
10-06-2025
- Business
- United News of India
LIC's Group Premium grows 14 percent for May 25, new business premium grows 10 pc
Kolkata, June 9 (UNI) Life Insurance Corporation of India (LIC) on Monday reported a 13.79 percent year-on-year (YoY) increase in group premium for the month of May. For the first two months of the fiscal 2026, group premium grew 13.66 pc, as per data released by the Life Insurance Corporation. In May 2025, LIC collected Rs 14,374.87 crore in group premium up from Rs 12,632.26 crore in May 2024. The overall new business premium grew 10.27 pc from Rs 16,690.39 crore for the month of May 2024 to Rs 18,405.04 crore for the month of May 2025. The overall life insurance industry garnered Rs 30,463.20 crore, marking a 12.68 percent rise over Rs 27,034.14 crore collected in the same month last year. In the Individual Premium category, the insurance behemoth posted a slight decline of 0.69 pc, collecting Rs 4,030.17 crore in May 2025 compared to Rs 4,058.13 crore in May 2024. During the month of May 2025, total policies issued by LIC stood at 10.68 lakh from 12.51 lakh in the same period last year. While individual policies were 10.67 lakh policies for the month of May 2025 from 12.48 lakh policies for the month of May 2024, Group Policies stood at 1,389 in the month of May 2025 from 2,279 for the month of May 2024. Total premium collected by the company for April-May 2025, stood at Rs 32,015.68 crore from Rs 29,074.03 crore for the same months last year. The individual premium segment amounted to Rs 7,191.04 crore, compared to Rs 7,233.61 crore in the same period last year. The group premium segment amounted to Rs 24,824.64 crore for April-May 2025, from Rs 21,840.42 crore in the previous year. LIC issued a total policy of Rs 17.94 lakh for the month of April-May 2025 from 21.07 lakh policies in the same period last year. Policies for the Individual Category stood at 17.91 lakh in the April-May 2025, from 21.03 lakh in the April-May 2024. Group policies stood at 2,558 in April-May 2025 from 3,704 policies in April-May 2024. LIC reported a robust 38 pc YoY growth in Q4FY25 consolidated net profit, reaching Rs 19,039 crore, and announced a final dividend of Rs 12 per share. While net premium income saw a slight dip, the full financial year witnessed an 18 percent increase in PAT (profit after tax) to Rs 48,151 crore. A bonus of Rs 56,190.24 crore was declared to policyholders, demonstrating the company's continued commitment to delivering value. Value of New Business (VNB) rose by 4.47 percent year-on-year to Rs 10,011 crore, with VNB margin (net) expanding by 80 basis points to 17.6 percent. The share of Non-Par Annualized Premium Equivalent (APE) within the individual business grew by 937 basis points year-on-year to 27.69 percent, while Non-Par APE itself surged by 50.28 percent year-on-year to Rs 10,581 crore. UNI PC SS
IOL News
02-06-2025
- Business
- IOL News
Momentum Group's third-quarter performance showcases resilience in challenging times
Momentum Group's earnings run rate in the third quarter was in line with the first two quarters, excluding the substantial positive market-related variances of the first six months Image: Supplied Momentum Group's positive financial trajectory at the half-year stage continued into the third quarter, the insurance, investment, and healthcare financial services group said in an operating update on Monday. 'The group delivered solid operational performance despite escalating geopolitical tensions and subdued economic growth, with normalised headline earnings (NHE) of R4.8 billion for the nine months ended 31 March 2025,' its directors said. Recurring premiums increased by 5% in the quarter to R3.1bn. Single premiums fell by 7% to R43.66bn. New business present value premiums fell by 4% to R58.04bn. Total expenses were up by 5%. The number of health members under administration increased by 4%. 'The earnings run rate in the third quarter was in line with the first two quarters, excluding the substantial positive market-related variances of the first six months (of approximately R500 million),' the directors said. They said the results were underpinned by 'disciplined execution across the business units and a continued focus on profitable growth.' The decline in the third-quarter new business present value premiums experience was in line with the trend in the first two quarters. The value of new business (VNB) continued to grow in the third quarter, albeit slower than in the first half. VNB was supported by a shift in new business mix toward more profitable lines and improved performance from Metropolitan Life. Credit spreads on annuity portfolios contributed positively to earnings. Stronger equity market performance supported higher fee income from investment contracts. Direct expenses increased marginally above inflation, largely due to the long-term incentive plan awards on the back of the group's strong share price gains. Other contributing factors on expenses included increased spending to meet compliance requirements from regulatory changes, and IT investment to implement the two-pot retirement system reforms. Benefits from a group-wide performance optimisation project were expected to become more pronounced in the 2026 financial year. To date, R116 million in savings was expected to be realised over the next year. In Momentum Metropolitan Life, the main life insurance entity in the group, the solvency cover ratio (SCR) decreased from 2.15 times at December 31, 2024, to 2.02 times at March 31, with the decrease reflecting strong operational earnings, offset by dividend payments to the group and an increase in the SCR. Momentum Retail's earnings benefited from a solid performance from the protection business and higher investment income on required capital. Favourable market variances contributed positively to earnings. Although still positive, mortality and morbidity experience variances were lower than in the prior period. Momentum Retail's new business premium value improved by 2%. Metropolitan Life's earnings were primarily driven by the improvement in new business profitability, notably on the protection business, following product commerciality and distribution optimisation initiatives. Earnings continued to benefit from positive persistency experience variance. Momentum Corporate's new business premium values fell by 29% to R8.2bn, mainly due to lower FundsAtWork single and recurring premium new business and the impact of sizable single premium large flows in the prior period. 'We are pleased with the performance the Momentum Group achieved over the period. We remain focused on delivering on the Impact strategy, with continued progress on strategic initiatives gaining momentum,' directors said. BUSINESS REPORT Visit:
