Latest news with #ICICIPrudentialLifeInsurance
Time of India
16-07-2025
- Business
- Time of India
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. 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo 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. Should you buy, sell, or hold ICICI Prudential Life Insurance's shares? Here's what analysts say Antique Antique has maintained a 'Buy' rating on ICICI Prudential Life Insurance, with an unchanged target price of Rs 715. Live Events 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. Nuvama Nuvama has maintained a 'Buy' rating on ICICI Prudential Life and raised the target price to Rs 770 from Rs 760. 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. Motilal Oswal 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)
Economic Times
16-07-2025
- 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
16-07-2025
- 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.
Time of India
15-07-2025
- Business
- Time of India
Cooling FD rates spark renewed interest in single premium insurance products
Insurance companies are likely to witness a resurgence in demand for single premium products as interest rates on bank fixed deposits begin to soften, making insurance-linked investment options more attractive to customers. 'There has been a drop in fixed deposit rates, and that has made single premium products a lot more attractive,' said Dhiren Salian, Chief Financial Officer of ICICI Prudential Life Insurance , during the company's post-earnings analyst call. 'The challenge for most of last year was that fixed deposit rates were relatively high, which dampened demand for single premium products—whether annuities or otherwise.' A single premium policy allows the policyholder to pay the entire premium amount upfront, at the inception of the policy term. This differs from traditional insurance plans, where premiums are paid periodically, monthly, quarterly, or annually over the life of the policy. With fixed deposit rates now trending downward, insurers expect investors to increasingly shift to single premium life insurance and annuity products , which not only offer long-term protection but also tax advantages and relatively stable returns. ICICI Prudential Life Insurance reported a 5% year-on-year decline in its Annualised Premium Equivalent (APE) in the June quarter. APE is a key sales metric for insurers that combines the full value of regular premiums with 10% of new single premiums, allowing for a standardized comparison across different types of insurance products. The decline in APE was primarily driven by a steep drop in annuity sales, which fell by more than 53% year-on-year. In contrast, protection plans—offering pure life cover—registered strong growth of over 24%, while non-linked savings products rose nearly 21%. Sales of Unit Linked Insurance Plans (ULIPs), which are market-linked products, declined by 13.6%. Despite the drop in ULIP sales, the company remains optimistic about a recovery in the second half of the fiscal year. 'ULIPs have been volatile over the last six months, though they recovered to a reasonable level,' said Amit Palta, Chief Product & Distribution Officer at ICICI Prudential Life Insurance. 'What we have observed in the past is that when markets bounce back, affluent customers don't immediately return to unit-linked products. However, given the strong fundamentals of the market and India's young demographic profile, we believe the current volatility around ULIPs is temporary. These products will become meaningful again, and we expect demand to return.' The insurer is banking on a combination of market recovery and product diversification to drive growth in the coming quarters. The protection and non-linked segments, in particular, are expected to continue contributing meaningfully, offering stability amid fluctuating market conditions impacting ULIP sales.
Business Standard
15-07-2025
- Business
- Business Standard
ICICI Prudential rises as Q1 PAT gains 34% YoY to Rs 302 crore
ICICI Prudential Life Insurance Company rose 1.24% to Rs 679.45 after the company reported a 34.02% surge in standalone net profit to Rs 302.08 crore in Q1 FY26 as against Rs 225.40 crore posted in Q1 FY25. However, total income declined marginally 0.54% YoY to Rs 25,320.15 crore in the quarter ended 30 June 2025. The net premium income for Q1 FY26 rose by 7.98% year-on-year to Rs 8,503.19 crore. The first-year gross premium income fell by 11.24% YoY to Rs 1,445.42 crore. Meanwhile, renewal premium income jumped 9.45% YoY to Rs 4,941.65 crore, and single premium income saw a rise of 19.94% to Rs 2,566.97 crore. Net commission stood at Rs 984.92 crore during the quarter, registering a growth of 4.16% YoY. The value of new business (VNB), which represents the present value of future profits, stood at Rs 457 crore with a VNB margin of 24.5% for Q1 FY26. The total Annualised Premium Equivalent (APE) stood at Rs 1,864 crore for Q1 FY26. The companys retail New Business Sum Assured grew by 31.5% year-on-year to Rs 77,750 crore in Q1 FY26. Annuity business grew at a four-year CAGR of 15% in Q1 FY26. Retail protection business APE registered a strong growth of 24.1% year-on-year from Rs 1.12 billion in Q1-FY2025 to Rs 1.39 billion for Q1-FY2026. New Business Sum Assured (NBSA) grew by 36.3% year-on-year from Rs 2,72,468 crore in Q1 FY25 to Rs 3,71,452 crore in Q1 FY26. The companys new business received a premium added 6.4% to Rs 4,012 crore, while total premium collections increased 8.1% to Rs 8,954 crore. The assets under management (AUM) rose 5.1% to Rs 3,24,489 crore in Q1 FY26 from Rs 3,08,875 crore in Q1 FY25. The cost-to-total premium ratio dropped to 21.2% from 24% a year earlier. Within the savings line of business, the metric improved to 14.1% from 16.8%. From a regulatory perspective, the solvency ratio strengthened to 212.3%, well above the IRDAI-mandated 150%. The companys net worth also rose to Rs 12,553 crore from Rs 11,291 crore last year. Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance, said, In line with our strategy to place our customers at the center of everything we do, simplifying our products and processes, strengthening our distribution network, aligning our cost structures with our product portfolio and proactively managing business risks, our Q1-FY2026 performance demonstrates the strength and resilience of our business model. Our profit after tax grew by 34.2% year-on-year to Rs 302 crore in Q1-FY2026 and our VNB stood at Rs 457 crore with a margin of 24.5%. We reported a total premium growth of 8.1% year-on-year in Q1-FY2026 on the back of our extensive distribution and comprehensive product suite. Protection continues to remain at the heart of our business strategy and we registered a strong growth of 24.1% year-on-year in our retail protection business. Furthermore, our total New Business Sum Assured grew by 36.3% year-on-year in the same period. Our customer-centric approach resulted in 54% of our policies being issued on the same day for the savings line of business. Our claim settlement ratio of 99.6%, with an average turnaround time of 1.1 days for non-investigated individual death claims, reinforces our commitment towards transparency and reliability. Notably, the results of our cost optimization initiatives have led to an improvement in our cost-to-premium for the savings line of business by 270 bps to 14.1% in Q1-FY2026. Risk management continues to be an integral part of our approach to business with a focus on right selling, sourcing and onboarding, reflected by our strong solvency ratio that stood at 212.3% in Q1-FY2026 and zero NPA since inception. Our 13th-month persistency ratio stood at 86% in Q1-FY2026, exemplifying the quality of our business. We will continue to work on our strengths, that is, customer centricity, product leadership, extensive distribution network and business excellence, aided by the building blocks of people, digitalisation and analytics to help us achieve our core objective of growing the absolute VNB. ICICI Prudential Life is promoted by ICICI Bank and Prudential Corporation Holdings, headquartered in the United Kingdom. The company offers an array of products in the protection and savings category that match the different life stage requirements of customers, enabling them to provide a financial safety net to their families as well as achieve their long-term financial goals.
