ICICI Life Insurance: Robust margins Retail protection momentum can support 12% APE and 15% VNB growth in FY27F; maintain Buy rating

Research evidence excerpt

ICICI Life Insurance: Robust margins Retail protection momentum can support 12% APE and 15% VNB growth in FY27F; maintain Buy rating

Global Markets Research

ICICI Life Insurance ICIR.NS IPRU IN 16 July 2026

EQUITY: FINANCIALS

RatingRobust margins Remains Buy

Target priceRetail protection momentum can support 12% APE and Increased from INR 71015% VNB growth in FY27F; maintain Buy rating INR 680

1QFY27 VNB margin at 26.7% vs 24.7% in FY26; significant beat on our estimates Closing15 July 2026price INR 525

• ICICI Life (ILife) reported strong 26% y-y growth in VNB (value of new business) while

Implied upside APE (annualized premium) growth at 15% was led majorly by the protection and +35.2%

annuity segments (up 46% y-y and 33% y-y, respectively) (Fig.8).

Market Cap (USD mn) 7,915.7

• The strong momentum in these products was also the key reason for the 200bp ADT (USD mn) 11.6

margin expansion in 1Q27 vs FY26, in our view. However, management highlighted

some drag from the GST cut that will continue for another quarter. Relative performance chart

Retail protection momentum continues; tepid trends in non-linked savings

• Since the GST cut, protection sales for the industry has seen healthy momentum that

continued well into 1Q27 as well. Retail protection APE y-y growth (Fig.9) has been

north of 40% for ILife since 3QFY26, while it was 43-70% for HDFC Life (HDFCLIFE

IN, Buy) and 53-99% for Axis Max Life (MAXF IN, Buy)

• However, non-linked savings APE was down 10% y-y, within which its par product

saw better traction than non-par. Management indicated heavy competition from fixed

deposits for its non-par product.

We build in 12% y-y APE growth with 25.5% VNB margins for FY27F

Source: LSEG, Nomura