ICICI Prudential Life Insurance Company (IPRU IN) – Q1FY27 Result Update – Protection-led mix lifts growth and margin – BUY
Published on 16 Jul 2026
Q1 APE growth saw a strong pickup (+14.6% YoY) led by sustained traction in protection and annuity. However, growth in ULIP and NPAR was soft due to market volatility and stiff competition. Factoring in a high base in H2, we build 10%/ 12% YoY APE growth in FY27/ FY28E supported by sustained demand in protection. Despite ITC-related impact and persistency changes, Q1FY27 VNB margin improved to 26.7% led by a favourable shift in product mix towards protection and positive operating efficiency. We increase our FY27E VNB margin estimates by 15bps (keeping FY28E unchanged), factoring a sustainable improvement in margin profile. We use the appraisal value framework to value IPRU and tweak our multiple to 1.5x FY28E P/EV with a TP of Rs715. Valuation continues to be undemanding. Reiterate BUY.
