Shares of ICICI Prudential Life Insurance Company experienced a notable uptick, soaring more than 5 percent during intra-day trading on Wednesday, April 16. This surge follows the company’s impressive financial results for the quarter ending March 2025 (Q4FY25). The insurer reported a remarkable 122 percent increase in net profit, reaching ₹385 crore, up from ₹174 crore in the same quarter last year. This growth was fueled by significant premium income and consistent advancements in both the protection and annuity sectors.

Strong Quarter Performance

In the latest quarter, ICICI Prudential’s net premium income climbed by 11 percent year-on-year, totaling ₹16,369 crore, compared to ₹14,788 crore the previous year. Sequentially, profit after tax saw a 19 percent increase, while premium income surged by 33 percent. Additionally, the company declared a final dividend of ₹0.85 per share for the fiscal year, enhancing shareholder value.

Annual Growth Highlights

For the fiscal year of 2025, ICICI Prudential Life showcased a 40 percent rise in profit after tax, amounting to ₹1,189 crore. The Value of New Business (VNB) climbed to ₹2,370 crore, with a VNB margin of 22.8 percent. The Total Annualised Premium Equivalent (APE) also saw a 15 percent increase, reaching ₹10,407 crore, while retail protection APE rose by 25.1 percent to ₹598 crore. The annuity segment demonstrated impressive growth, boasting a two-year CAGR of 31.4 percent in FY25.

• Retail New Business Sum Assured (NBSA) grew by 37 percent year-on-year, totaling ₹3.32 lakh crore.
• The total in-force sum assured increased by 15.6 percent to ₹39.43 lakh crore.
• The company now provides life insurance coverage to over 9 crore individuals.

Anup Bagchi, the Managing Director and CEO, emphasized the significance of surpassing the ₹10,000 crore mark in APE for the first time. He attributed this achievement to the company’s effective multi-channel distribution strategy and flexible product offerings. Notably, the product “ICICI Pru Gift Select,” launched in January 2025, responds to the rising demand for guaranteed income.

Market Reactions and Stock Performance

Following the announcement of these results, ICICI Prudential’s stock surged by 5.6 percent, reaching an intraday peak of ₹599.65. However, the shares remain nearly 25 percent below their 52-week high of ₹795, achieved in October 2024. The stock previously hit a 52-week low of ₹516.45 in June 2024.

Despite the recent positive momentum, the stock has seen an 8 percent decline over the past year. In April alone, it has gained 5.6 percent, following a 2.3 percent rise in March. Prior to this, the stock faced a five-month losing streak, with a 10.5 percent drop in February and 6 percent in January.

Analyst Perspectives: Mixed Reviews and Target Adjustments

Brokerage firm Nuvama has upgraded ICICI Prudential to a ‘Buy’ rating but adjusted its target price downward to ₹690 from ₹720. They noted a modest 2.4 percent year-on-year increase in VNB, emphasizing that a 7.8 percent decline in retail APE hindered overall growth. Furthermore, a dip in VNB margin by 185 basis points to 22.8 percent led Nuvama to reduce its VNB estimates for FY26E and FY27E by 5.5 and 6.1 percent, respectively.

Conversely, HDFC Securities maintained an ‘Add’ rating, with a lowered target price of ₹665, citing weaker-than-expected APE and VNB growth. They highlighted ongoing margin pressures due to the company’s ULIP-heavy product mix. While they project a 14 percent CAGR in APE and VNB from FY25 to FY27, they remain cautious about margin expansion prospects due to changes in actuarial and product mix.

For further insights on ICICI Prudential’s performance and market strategies, you can explore additional resources on ICICI Prudential’s official website or visit financial news platforms for up-to-date stock analysis.