Motilal Oswal has given Buy recommendation for ICICI Prudential Life Insurance with a target price of Rs. 780 in its research report issued on Oct 20, 2021
IPRU has maintained strong traction in premium growth, led by a recovery in ULIP, while healthy momentum continues in the Non-Linked and Annuity segment, backed by a strengthened distribution. The share of banca (excluding ICICIBC) rose to ~11% v/s 5.1% in FY20. The increase in agent recruitment and adding of new ecommerce players will continue to support premium growth. VNB growth moderated in 2QFY22 affected by weak Protection trends. We expect VNB margin to remain stable as growth trends remain steady and Protection growth recovers. We estimate IPRU to deliver ~29%/32% CAGR in new business APE/VNB growth over FY21-24E, led by improving margin (29% by FY24E), thus enabling an improvement in operating RoEV to ~17%. We maintain our Buy rating with an unchanged TP of INR780/share (2.7x 1HFY24E EV).