ICICI Prudential Life Insurance Co has reported better-than-expected growth in premium income, driven by a strong retail segment in the quarter. The company also saw strong year-on-year performance in investment income. However, its margins were impacted by higher commission costs due to new regulatory norms.
The increase in margins was influenced by an increase in ULIP sales and a decrease in demand for non-par products. Looking ahead, ICICI Prudential aims for growth in the Value of New Business (VNB) as opportunities arise.
Asit C Mehta maintains a "Buy" rating on ICICI Prudential with a target price of Rs 893, reflecting a valuation of 2.3 times its FY26E embedded value.