ICICI Prudential Q3 Results Review — Miss Across Key Parameters; Motilal Oswal Reiterates ‘Buy’ On The Stock Motilal Oswal Financial Services NDTV Profit

ICICI Prudential’s VNB margin has been under pressure during the quarter, mainly owing to the shift in product mix (higher share of ULIPs).

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Motilal Oswal Report

ICICI Prudential Life Insurance Ltd. reported new business annual premium equivalent growth of 28% YoY to Rs 24.4 billion (6% miss). For 9MFY25, APE grew 28% YoY to Rs 69.1 billion.

VNB margin for the quarter stood at 21.2% versus our estimate of 23%. Absolute VNB grew 19% YoY to Rs 5.2 billion (13% miss).

For Q3 FY25, ICICI Prudential reported a 43% YoY growth in shareholder PAT to Rs 3.2 billion (27% beat). For 9MFY25, it reported a PAT of Rs 8 billion (+18% YoY).

Management is confident in its well-diversified distribution network along with multiple levers available to achieve alpha over the market in terms of premium growth. The ongoing focus would remain on VNB growth, which will primarily depend on APE growth.

Considering ICICI Prudential’s Q3 performance, we cut our APE growth and VNB margin estimates. For FY25, we expect new business APE/VNB/PAT to grow 23%/ 15%/37% YoY to Rs 111.5 billion/Rs 25.6 billion/Rs 11.7 billion. Going forward, the company’s ability to sustain strong premium growth and improve VNB margin will be crucial. Reiterate Buy with a target price of Rs 780 (based on 1.7x Sept’26E EV).

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. Read more on Research Reports by NDTV Profit.Going forward, ICICI Prudential’s ability to sustain strong premium growth and improve VNB margin will be crucial, says the brokerage.  Read MoreResearch Reports 

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