Sharekhan has given Buy recommendation for ICICI Prudential Life Insurance with a target price of Rs. 754 in its research report issued on Jan 19, 2022

Sharekhan’s research report on ICICI Prudential Life Insurance

In Q3FY22, APE grew moderately by 16% y-o-y. Annuity business continued to demonstrate strong growth at 75% y-o-y and constituted ~20% of overall new business premium. Protection business, which constituted ~28% of overall new business premium, grew by ~19% y-o-y. ULIP business continues to witness strong growth (of ~21% y-o-y), owing to buoyant equity markets. VNB recorded robust growth of 35% y-o-y to Rs. 1,388 crore, with VNB margin at 27.1%, up by 102 bps y-o-y and 65 bps q-o-q in Q3FY22, primarily on account of better product mix. We believe that the growth prospects of protection business remains robust given the under-penetration in the long term and the growth story in the Indian insurance space continues to hold true.

Outlook

We have revised our estimates and target multiple and maintain a Buy with a revised PT of Rs. 754.

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