APE, VNB miss estimates; margin down 600bp YoY

Company
24 Jul 2024
5 Min read 
  • ICICI Prudential Life Insurance reported 34.4% YoY growth in APE to INR 19.6b in 1QFY25.
  •  VNB grew 8% YoY to INR 4.7b (6% miss) with VNB margins declining to 24% in 1QFY25.
  •  The company's ability to sustain strong premium growth and VNB margins will be vital for re-rating of the stock.
  •  Shift in product mix towards ULIPs led to a decline in VNB margins.
  •  Agency growth was driven by the addition of more than 12k agents and the launch of new products.
  •  The impact of surrender charges is not likely to be material as the share of non-linked business is significantly lower.
  •  IPRU expects growth to come back in the medium term.
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