One of India’s leading life insurance companies, known for its diverse product portfolio and strong distribution network, showed mixed performance following its second-quarter results for FY25. The company, which specialises in retail insurance, protection plans, and investment-linked policies, maintains its market position despite margin pressures.
Stock Movement:
After announcing its quarterly results, ICICI Prudential Life Insurance Limited’s share has surged up by 3.2%. The stock opened at ₹701.20 and is currently trading at ₹757.75, with a high of ₹759.85 and a low of ₹701.20. The market capitalisation now stands at approximately ₹1.09 lakh crore.
Reason for Rise:
ICICI Prudential Life faces challenges in maintaining margins despite strong growth. The company reported robust retail Annual Premium Equivalent (APE) growth of 26.2% year-on-year in Q2 FY25. However, margin pressure due to product mix changes and increased distributor payouts has impacted overall performance. The value of new business (VNB) grew marginally by 1.6% YoY to ₹5.9 billion.
Q2 FY25 Result Walkthrough:
Coming into the financial analysis of ICICI Prudential Life Limited, the company’s consolidated revenue from operations increased by 44.6 percent YOY, from Rs. 17,388 crore in Q2 FY24 to Rs. 25,158 crore in Q2 FY25, and down by 0.9 percent QoQ from Rs. 25,396 crore in Q1 FY24.
The company reported strong performance in annuity products (+73.8% YoY) and individual protection (29.7% YoY growth). However, group protection decreased by 2.7% YoY due to tighter lending norms and lower group term sales.
In Q2 FY25, ICICI Prudential Life Limited’s consolidated net profit slightly increased by 2.83% YOY, reaching Rs. 251 crore compared to Rs. 244 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 12.05 percent, from Rs. 224 crore.
The basic earnings per share increased by 11.53% and stood at Rs 1.74 as against Rs 1.56 recorded in the previous quarter FY25.
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Target Price:
HDFC Securities has an add call on ICICI Prudential Life Insurance with a target price of Rs 825. The company’s focus on overall growth rather than just specific products is expected to boost profits. They predict the company’s key metrics (APE/VNB) will grow around 19%-20% annually from FY24 to FY27.
Company Profile:
ICICI Prudential Life Insurance, a leading private life insurer in India, operates through multiple distribution channels, including agency, bancassurance, and multi-insurer platforms. The company offers a comprehensive range of insurance products across traditional, unit-linked, and protection segments.
It is a joint venture between ICICI Bank and Prudential Corporation Holdings, a leading Indian insurer established in 2000. With over ₹3 lakh crore AUM by 2024, it offers diverse products including life insurance, pensions, and health coverage through multiple distribution channels, maintaining a strong market position.
The insurer maintains strong partnerships, with ICICI Bank contributing ₹1-1.2 billion monthly sales. Exclusive bank partners contribute approximately 25% to retail sales. The company’s focus on digital transformation and customer-centric approach continues to drive its market presence.
Written By Fazal Ul Vahab
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