ICICI Prudential Life shares gain 3% after stellar premiums growth in Nov

Shares of ICICI Prudential Life Insurance company surged 2.84 per cent at Rs 694.90 per share on the BSE in Tuesday’s intraday trade. This came after ICICI Prudential Life experienced a 1.5x increase in its November premiums, with total annual premium equivalent (APE) rising 2.7x compared to the same period last fiscal. The company's retail APE also saw a strong 28 per cent growth.

 

Analysts at JM Financials said that the company’s 122.7 per cent growth in group APE is likely due to some large deal win. The company also saw its market share improvement by 110 basis points Y-o-Y  at 6.7 per cent. 

 

Moreover, other private insurers like Max Life also reported strong performance, with a 21 per cent Y-o-Y increase in premiums and a 25 per cent growth in both total and retail APE. 

 

On the other hand HDFC Life saw a 13 per cent Y-o-Y rise in premiums for November and a 14 per cent growth for the first eight months of FY25, with both total and retail APE up by 3 per cent in November.

 

Meanwhile, Private life insurance companies delivered strong performance, with November premiums rising 31 per cent Y-o-Y. This growth contributed to a 15 per cent Y-o-Y increase in premiums for the first eight months of FY25.

 

On the financial front, ICICI Prudential Life Insurance's net profit rose marginally by 3 per cent to Rs 252 crore in the July-September quarter of the financial year 2025 (Q2FY25) from Rs 244 in the year-ago period.

 

Value of new business (VNB) of the insurer increased 1.5 per cent year-on-year (Y-o-Y) to Rs 586 crore in Q2 against Rs 577 crore in the year-ago period. VNB is the present value of all future profits to shareholders measured at the time of writing the new business contract.

 

The insurer’s VNB margin, a measure of profitability, contracted to 23 per cent as compared to 28 per cent in the last year.

 

On the equities side, ICICI Prudential Life’s stock outperformed the market year to date as it has surged 28 per cent, while gaining 25 per cent in the last one year. In comparison BSE Sensex has risen 12 per cent year to date and 16 per cent in a year. 

 

The company has a total market capitalisation of Rs 98,845.45 crore.  At 12:26 AM; the shares of the company were trading 0.83 per cent higher at Rs 681.25 a piece. By comparison, the BSE’s Sensex was up 0.08 per cent at 81,445.58 level.