ICICI Prudential Life Insurance (ICIR.BO): Strong VNB margin print

Research evidence excerpt

ICICI Prudential Life Insurance (ICIR.BO): Strong VNB margin print

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15 Jul 2026 15:10:30 ET │ 14 pages

ICICI Prudential Life Insurance

(ICIR.BO)

Strong VNB margin print

CITI'S TAKE

VNB margin increased ~220/155 bps YoY/QoQ to 26.7% aided by favourable Buy

shift in business mix, improvement in cost ratios (-50 bps YoY in savings), Price (15 Jul 26 15:30) Rs524.80

and absorption of yield curve benefits. Share of margin accretive retail Target price Rs945.00↑protection, group protection, and annuities was +300/300/85 bps YoY.

Business growth through partnership distribution channels is encouraging. from Rs885.00

ICICI Prudential’s current benign valuation largely ascribes negligible Expected share price return 80.1%

growth in VNB over the next decade, based on reverse valuation. Investor

Expected dividend yield 0.5%concerns largely pertained to growth in individual business, margin profile,

potential overhang of stake sale by Prudential, reduction in business Expected total return 80.5%

volumes at a key banca channel post Prudential’s new planned acquisition Market Cap Rs761,381M

of Bharti Axa and sustained negative releases in annual EV. Growth has

US$8,072Mlargely revived and margin trends are robust. Management has alluded to

comfortable operational band across most assumptions, on the overall

book. We remain constructive on gradual re-rating. Buy. Rollover to

Jun’28E. TP Rs945.

Price Performance

Change in estimates — We raise our VNB estimates by 5-7% over the medium-term, (RIC: ICIR.BO, BB: IPRU IN)

capturing higher base of margin on the back of favourable business mix shift

towards protection and annuities. Additionally, we expect gradual uptick in the non-

par business. Tailwinds to credit protect business are likely to sustain. Finally,