- ICICI Prudential’s 3rd quarter net income was 2.27 billion rupees, falling short of the estimated 2.72 billion rupees.
- The net premium income for the quarter stood at 99.29 billion rupees.
- Net investment income for the same period was 163.15 billion rupees.
- Other income for the quarter was reported at 650 million rupees.
- For the nine-month period, the value of the new business was 14.51 billion rupees.
- The annual premium equivalent for the nine-month period was 54.30 billion rupees.
- The assets under management for the nine-month period were 2.87 trillion rupees.
- There were 25 buys, 6 holds, and 2 sells reported for ICICI Prudential’s stocks.
ICICI Prudential Life Insurance on Smartkarma
According to Raj Saya, CA, CFA on Smartkarma, an independent investment research network, the recent analyst coverage of ICICI Prudential Life Insurance has been bearish. In his latest insight report, titled “ICICI Prudential Life: 2Q24 Result Update: The Search for Salvation (Continues..)“, Saya highlights the lack of support from the company’s parent, ICICI Bank, as the main concern. This has resulted in a bleak outlook for growth and margins, leading to a bearish sentiment towards the company.
The 2Q24 earnings results for ICICI Prudential Life Insurance were reported yesterday, with flat sales and decreasing margins. The lack of support from its parent has been a consistent issue, leading to ICICI Pru losing market share to other private peers. Saya values the company at ~1.4x FY25e P/EV, which implies a -15% downside to its current price. This reflects the bearish outlook for growth and margins in the medium-term, making ICICI Prudential Life Insurance a cautious investment choice for investors.
A look at ICICI Prudential Life Insurance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
ICICI Prudential Life Insurance Company Limited, a leading life insurance provider in India, has received a Smartkarma Smart Score of 2 for value, 1 for dividend, 3 for growth, 4 for resilience, and 2 for momentum. This indicates a positive long-term outlook for the company. Despite a lower score for value and dividend, ICICI Prudential Life Insurance has received higher scores for growth, resilience, and momentum, which are key factors for long-term success.
The company, which offers a range of life insurance services including claim processing and electronic insurance accounts, conducts its business in India. With a strong focus on growth and resilience, ICICI Prudential Life Insurance is well-positioned to thrive in the competitive Indian market. These factors, coupled with a positive momentum score, make ICICI Prudential Life Insurance a promising choice for long-term investments in the life insurance sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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