Jun‘26 Qtr. Results: Beat Led By Better Product Mix

Research evidence excerpt

Jun‘26 Qtr. Results: Beat Led By Better Product Mix

anca remain EV (Rsbn) 479 530 601 683 779 P/EV (x) 1.6 1.5 1.3 1.1 1.0

a drag: Agency APE grew by 2% y-y despite a low base while banca was soft at 6% due to .Source:P/VNB (x) Company data, Jefferies12 estimates9 6 3 nm

continued business recalibration & emphasis on quality. Softer trends in persistency: 13M

persistency ratio fell 200bps y-y to 84% while 61M fell 190bps to 62%.

APE growth led by protection & annuity, while savings slowed: Jun'26 qtr. APE grew by 15%

y-y primarily driven by group funds, annuity & protection. However, savings APE witnessed a

slowdown (6% y-y). Retail APE grew only 9% y-y despite a favorable base, with growth being

driven by partnership channel, while lagging in agency & banca channel. We have built 13% APE

CAGR over the next 3 years as decline in its zero surrender annuity product is now in the base.

We have assumed a slowdown in ULIPs (9% y-y growth in FY27e), improvement in annuity

growth to 38% y-y in FY27e & demand for protection remaining elevated.

Favourable mix shift can drive higher margins: Jun'26 qtr. VNB margin was 26.7%, up

222bps y-y, led by higher group & retail protection share. This is consistent with our view

of life insurance margins bottoming in FY26 & expanding over FY27-28e led by improved

product mix. We estimate 190bps VNB margin expansion for IPRU between FY26-29e led by

rise in share of protection, which IPRU has been expanding across channels, & increasing

contribution from agency channel, which has lower ULIP mix.

Where do we go from here? IPRU trades at an attractive 1.3x FY27e EV, 25% discount to peers,

which implies investors are pricing in little long-term growth. While APE growth challenges

remain here, we think IPRU has stabilized its margins.