HSIE Results Daily: ICICI Prudential Life Insurance Company

ICICI Prudential Life Insurance Company: ICICI Prudential Life’s (IPRU) FY26 APE grew 2% YoY, below estimates, while 11% VNB growth beat expectations. VNB margin at 24.7% surprised positively, as headwinds from GST input tax credit and softer retail business growth, amid a volatile geopolitical environment, were more than offset by a higher share of protection, a favorable yield curve movement, and improved rider attachment. Operating RoEV, however, weakened to 11.9% (FY25: 13.1%), weighed down by persistently adverse experience on operating assumptions and expenses. Given the uncertain macro backdrop, we trim our APE estimates for FY27E/FY28E by 6%/8% and reduce VNB estimates by 3%/5%. We maintain ADD with a TP of INR595 (1.3x Mar-28E EV), implying a ~45% discount to SBILIFE.