STRENGTHS:
Strong Momentum: Price above short, medium and long term moving averages
Company with Low Debt
Company with Zero Promoter Pledge
Near 52 Week High
WEAKNESS:
Poor cash generated from core business - Declining Cash Flow from Operations for last 2 years
Declining Net Cash Flow : Companies not able to generate net cash.
OPPORTUNITY:
Decrease in Provision in recent results
THREATS:
Companies with growing costs YoY for long term projects
High PE (PE > 40)
Promoter decreasing their shareholding
Quick Results Snapshot:
H1FY24 Bi-Annual Result Announced for ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company announced H1FY24 results:
ICICI Prudential Life Insurance has registered a 27% growth in its Profit after Tax (PAT) to Rs 4.51 billion for H1FY24
The Value of New Business (VNB) stood at Rs 10.15 billion with a VNB margin of 28.8% for H1FY24
The total Annualised Premium Equivalent (APE) for the Company stood at Rs 35.23 billion, with minimal concentration risk from any single distribution channel.
In H1FY24, the retail protection business segment APE grew by 73.7% YoY, resulting in a protection mix of 20.8% of overall APE.
The Company’s retail New Business Sum Assured (NBSA) grew by 52% YoY to Rs 1.1 trillion in H1FY24. The total NBSA stood at Rs 4.9 trillion in H1FY24.
The 13th-month persistency ratio improved by 100 bps to 86.9% for H1FY24. The 49th month persistency ratio, improved by 220 bps to 65.8% for H1FY24.
The Assets Under Management (AUM) grew by 11.3% YoY to Rs 2.7 trillion on September 30, 2023.
Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “We serve a crucial societal need of providing financial security to millions of families by helping them achieve their protection, retirement, health, and long-term savings goals. In H1FY24, our VNB stood at Rs 10.15 billion, with a margin of 28.8%, while PAT grew 27% year-on-year to Rs 4.51 billion. We are focused on growing the absolute VNB with the help of our 4D framework comprising Data analytics, Diversified propositions, Digitalisation, and Depth in Partnerships, to develop quality business in a risk-calibrated manner.
The retail protection business, which faced supply-side challenges in the past has come back on track. The retail protection APE registered a strong YoY growth of 73.7%, resulting in a total protection APE of Rs 7.34 billion in H1FY24. We believe protection, given the under-penetration in the country, presents a significant growth opportunity for us.
Persistency is the most effective indicator of the quality of sales and customer experience. Our 13th and 49th-month persistency ratios in September improved by 100 bps to 86.9% and 220 bps to 65.8% respectively. The customer’s continued trust in us is reflected in the improvement in persistency ratios across all cohorts.
We recently launched the first-of-its-kind ‘ICICI Pru Stack’, a set of platform capabilities encompassing digital tools and analytical abilities. We believe the key to market expansion is in getting the customer-product-channel equation correct – the right product to the right customer at the right price through the right channel. The ICICI Pru Stack has facilitated customer segmentation, enabling us to extend ‘Term By Invite’ and ‘Insurance By Invite’ offers to customers, besides providing them with an end-to-end digital fulfillment journey from buying to claim settlement. The Stack has enabled the Company to issue ~20% of the policies on the same day for the savings line of business.”
SHAREHOLDINGS:
Icici Bank Limited PROMOTER 51.2 %
Prudential Corporation Holdings Limited PROMOTER 22.1 %
Camas Investments Pte. Ltd. FII 1.8 %
Government Of Singapore FII 1.6 %
Compassvale Investments Pte. Ltd. PUBLIC 2.0 %
Sbi Arbitrage Opportunities Fund DI 2.0 %
Icici Prudential S&P Bse 500 Etf DII 1.0%
Thats all for now.
N.B : I wanted to emphasize that the views I express are strictly personal and should not be construed as advice. It is crucial to consult with your financial advisor before making any trades or investment decisions. The complexity and unpredictability of financial markets underscore the importance of seeking professional guidance tailored to your individual financial circumstances and goals.
Strong Momentum: Price above short, medium and long term moving averages
Company with Low Debt
Company with Zero Promoter Pledge
Near 52 Week High
WEAKNESS:
Poor cash generated from core business - Declining Cash Flow from Operations for last 2 years
Declining Net Cash Flow : Companies not able to generate net cash.
OPPORTUNITY:
Decrease in Provision in recent results
THREATS:
Companies with growing costs YoY for long term projects
High PE (PE > 40)
Promoter decreasing their shareholding
Quick Results Snapshot:
H1FY24 Bi-Annual Result Announced for ICICI Prudential Life Insurance Company Ltd.
ICICI Prudential Life Insurance Company announced H1FY24 results:
ICICI Prudential Life Insurance has registered a 27% growth in its Profit after Tax (PAT) to Rs 4.51 billion for H1FY24
The Value of New Business (VNB) stood at Rs 10.15 billion with a VNB margin of 28.8% for H1FY24
The total Annualised Premium Equivalent (APE) for the Company stood at Rs 35.23 billion, with minimal concentration risk from any single distribution channel.
In H1FY24, the retail protection business segment APE grew by 73.7% YoY, resulting in a protection mix of 20.8% of overall APE.
The Company’s retail New Business Sum Assured (NBSA) grew by 52% YoY to Rs 1.1 trillion in H1FY24. The total NBSA stood at Rs 4.9 trillion in H1FY24.
The 13th-month persistency ratio improved by 100 bps to 86.9% for H1FY24. The 49th month persistency ratio, improved by 220 bps to 65.8% for H1FY24.
The Assets Under Management (AUM) grew by 11.3% YoY to Rs 2.7 trillion on September 30, 2023.
Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “We serve a crucial societal need of providing financial security to millions of families by helping them achieve their protection, retirement, health, and long-term savings goals. In H1FY24, our VNB stood at Rs 10.15 billion, with a margin of 28.8%, while PAT grew 27% year-on-year to Rs 4.51 billion. We are focused on growing the absolute VNB with the help of our 4D framework comprising Data analytics, Diversified propositions, Digitalisation, and Depth in Partnerships, to develop quality business in a risk-calibrated manner.
The retail protection business, which faced supply-side challenges in the past has come back on track. The retail protection APE registered a strong YoY growth of 73.7%, resulting in a total protection APE of Rs 7.34 billion in H1FY24. We believe protection, given the under-penetration in the country, presents a significant growth opportunity for us.
Persistency is the most effective indicator of the quality of sales and customer experience. Our 13th and 49th-month persistency ratios in September improved by 100 bps to 86.9% and 220 bps to 65.8% respectively. The customer’s continued trust in us is reflected in the improvement in persistency ratios across all cohorts.
We recently launched the first-of-its-kind ‘ICICI Pru Stack’, a set of platform capabilities encompassing digital tools and analytical abilities. We believe the key to market expansion is in getting the customer-product-channel equation correct – the right product to the right customer at the right price through the right channel. The ICICI Pru Stack has facilitated customer segmentation, enabling us to extend ‘Term By Invite’ and ‘Insurance By Invite’ offers to customers, besides providing them with an end-to-end digital fulfillment journey from buying to claim settlement. The Stack has enabled the Company to issue ~20% of the policies on the same day for the savings line of business.”
SHAREHOLDINGS:
Icici Bank Limited PROMOTER 51.2 %
Prudential Corporation Holdings Limited PROMOTER 22.1 %
Camas Investments Pte. Ltd. FII 1.8 %
Government Of Singapore FII 1.6 %
Compassvale Investments Pte. Ltd. PUBLIC 2.0 %
Sbi Arbitrage Opportunities Fund DI 2.0 %
Icici Prudential S&P Bse 500 Etf DII 1.0%
Thats all for now.
N.B : I wanted to emphasize that the views I express are strictly personal and should not be construed as advice. It is crucial to consult with your financial advisor before making any trades or investment decisions. The complexity and unpredictability of financial markets underscore the importance of seeking professional guidance tailored to your individual financial circumstances and goals.
Trade active:
bought at cmp 580.55