ICICI Prudential Life Insurance Company Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 93414.18 Crore) operating in Financial Services sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 690.95 Crore, down -6.04 % from last quarter Total Income of Rs 735.33 Crore and down -10.78 % from last year same quarter Total Income of Rs 774.40 Crore. Company reported net profit after tax of Rs -185.29 Crore in latest quarter.
Investment Rationale
The recent strategy changes made by IRPU in its product mix, with a higher focus on non-linked segments, backed by strengthened distribution, are driving healthy premium growth. The share of banca (excluding ICICI Bank) increased to ~11% v/s 5% in FY18. Persistency rate has improved, reflecting strength in business quality. The brokerage expects this trend to continue, aided by a higher mix of the Non-Linked Savings/Protection business, both of which have a higher persistency rate. However, profitability has been affected due to higher settlement of COVID-19 claims (3.2x rise over FY21) and increased provisions. It estimates IPRU to deliver ~32%/36% CAGR in new business APE/VNB growth over FY21-23E, led by improving margin (29% by FY23E), thus enabling an improvement in operating RoEV to ~17%.
Promoter/FII Holdings
Promoters held 73.5 per cent stake in the company as of March 31, 2021, while FIIs held 16.5 per cent, DIIs 4.3 per cent and public and others 5.7 per cent.
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