ICICI Pru Life Q1 Review- Margin, Growth Outcomes Improve But Positives Are Somewhat Priced In: Yes Securities

Yes Securities Report

Value of new business margin rose YoY, with ICICI Prudential Life Insurance Company Ltd. continuing to focus on improving product level margin:

The VNB margin for Q1 FY25 was 24.0%, down -593 basis points QoQ but up 258 bps YoY. Management stated that it is more appropriate to look at the evolution of margin in Q1 FY25 compared with FY24 as a whole as opposed to looking at Q4 FY24 only.

As regards surrender rules impact, management stated that the impacted portfolio is about 17% of business, which could see a 1-2% margin impact and so, the overall impact would be minimal.

The VNB margin of 24% for the quarter has been achieved despite a high share for Unit Linked Insurance Plan of about 50%.

ICICI Pru Life does not target a product mix but does try to maximise product level margin through tenure, riders and other factors.

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