Morgan Stanley has maintained an ‘Equal-weight’ rating on ICICI Prudential Life Insurance while cutting its target price to ₹600, as the stock currently trades at ₹572.50. The brokerage flagged key concerns around growth moderation and a hit to embedded value (EV).
According to the report, the company’s Value of New Business (VNB) came in better than Morgan Stanley’s estimate but fell short of street consensus. A major drag came from a revision in actuarial assumptions — IPRU had to strengthen its mortality assumptions for group credit life, leading to a notable negative impact on its EV.
Morgan Stanley has also revised its APE (Annualized Premium Equivalent) growth assumptions downward, citing slower momentum in unit-linked insurance plans (ULIPs) — a key business vertical for the company. As a result, it now builds in a more gradual expansion in VNB margins and has subsequently trimmed its overall VNB forecasts.
The brokerage remains cautious, suggesting that near-term upside may be limited unless there’s a visible recovery in product mix or margin trajectory.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
