Attractive valuations make ICICI Prudential Life Insurance a long term buy

However, after a sell-off from disappointed investors, valuations have corrected and the stock may be worth a long-term buy

ICICI Prudential Life Insurance Company (IPru) is struggling to generate growth in the value of new business (VNB). This is due to a combination of weak growth through the parent bank’s channels, a shifting product mix in favour of unit-linked life insurance policies (ULIPS), and higher payouts to third-party channels.

Leverage from current investments, a further reduction in contributions from ICICI Bank, and a pick-up in non-participating policies from the end of the year is key for this metric in the near to medium term.

However, after a sell-off from disappointed investors, valuations have corrected and the stock may be