ICICI Prudential Life: Moderate valuations, health growth prospects

In FY25, embedded value grew 13 per cent with embedded value operating profit (EVOP) growth at 10 per cent Y-o-Y

ICICI Prudential Life Insurance Company (IPRU) reported a weak performance for the January-March quarter (Q4) of FY25, seeing a decline of 3 per cent year-on-year (Y-o-Y) in annualised premium equivalent (APE) to ₹3,500 crore.

 

This is due to a fall in unit-linked insurance plans (Ulips), which constitute 43 per cent of the APE. However, many analysts have retained the ‘buy’ recommendations for IPRU.

 

The negatives are said to be factored into the price. Value of new business (VNB) margin, a profitability indicator, improved to 22.7 per cent in Q4FY25, up 120 basis points (bps) Y-o-Y and 150 bps quarter-on-quarter (Q-o-Q).