Goldman Sachs has reiterated its ‘Neutral’ stance on ICICI Prudential Life Insurance, revising the target price to ₹650 from ₹665. This implies a potential upside of approximately 2.2% from the current market price of ₹635.90.
The brokerage noted strong annual premium equivalent (APE) growth; however, it came at the cost of margins as the business mix shifted towards lower-margin products such as ULIPs and Group Fund businesses. ICICI Prudential has repriced its products in line with October yields after missing repricing opportunities in the second quarter.
Goldman Sachs also highlighted that proprietary channels, such as agency and direct distribution, are expected to grow faster due to ongoing investments. Despite these developments, group term pricing challenges remain a concern for the insurer.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
