Shares of ICICI Prudential Life Insurance Co. surged the most in a year after analysts maintained their bullish stance on the private insurer, citing improved value of new business, diversified distribution network and growth in non-linked plans.
That’s despite a 64.2% year-on-year slump in net profit at Rs 63.78 crore in the quarter ended March, according to an exchange filing. The bottomline for the full fiscal, too, fell to Rs 960 crore from Rs 1,069 crore a year ago.
The company’s value of new business premium rose 26% year-on-year to Rs 591 crore in the reported quarter, while for the full year jumped 21.7% to Rs 1,621 crore. VNB margin stood at 25.1% for FY21.
The insurer’s solvency ratio stood at 217% on March 31, 2021, well above the regulatory requirement of 150%.
Total assets under management stood at Rs 2.14 lakh crore as of March 2021, a 40% increase over the year earlier, which the company said is an “outcome of growth in new business, strong persistency and robust fund management”.
“Despite the disruptions caused by Covid-19, we were able to demonstrate resilience in our operations. In this quarter, APE grew 27% year-on-year, with March posting the best ever monthly sales for the company in any year since inception,” NS Kannan, chief executive officer at ICICI Prudential Life, was quoted as saying in the filing. “We were able to capitalise on opportunities to build a well diversified product portfolio, on the back of 114.1% and 214.7% year-on-year growth in the traditional savings and annuity product segments, respectively, in Q4 FY21. The strong performance was driven in equal measure by over 100 valuable partnerships forged this year, as part of our strategy to deepen and widen distribution.”
Share of ICICI Prudential Life gained as much as 13.9%, the most since April 27, 2020, but pared some of it to trade around 8% higher as of 2:30 p.m. on Tuesday.
Of the 36 analysts tracking the company, 31 have a ‘buy’ rating, four suggest a ‘hold’ and one recommends a ‘sell’, according to Bloomberg data. The average of the 12-month consensus price target implies an upside of 20.2%.