Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Research

| More

ICICI Prudential Life Insurance Co. Ltd. - Pure play on life insurance - Geojit BNP Paribas

Posted On: 2016-09-18 20:02:47

ICICI Prudential Life Insurance Co. Ltd. (ICICI Pru Life) is India's largest private Life Insurer by total premium and assets under management as on FY16, with an overall market share of 11.3%. The company has a network of 521 offices with 10,663 employees and 1,21,016 advisors across India as of FY16. ICICI Pru Life's total premium and net profit has grown at a CAGR of 8% and 5% in last 4 years, respectively. However, the company has consistently generated ROE in excess of 30% in last 4 years. Besides, the company's claim-settlement ratio was 96.2% for FY16 which was the highest in the private life insurance space, followed by Max Life (94%) and HDFC Life (91%). The company has one of the lowest expense ratio in the industry and it has further decreased to 14.6% in FY16 from 18.8% in FY14 on the back of improved operating efficiency.

ICICI Pru Life has a strong capital position with a solvency ratio of 320.0% as of FY16 as compared to the regulatory requirement of 150.0%. ICICI Pru Life remains outperformer in private life insurance space despite challenging business environment. The untapped opportunity and penetration in life insurance provides ample scope for the company to grow its portfolio at a rapid pace. ICICI Pru Life had an embedded value (EV) of Rs 139.4 bn as of FY16 with RoEV of 15.3%. (EV is a common valuation measure in the insurance industry which measures potential future profits from existing business.)

At the upper price band of Rs334 per share, the IPO is priced at 3.4x FY16 P/EV which is favourable as compared to the valuation of recent insurance deal between HDFC Life and Max Life. The transaction valued HDFC Life at 4.5x FY16 P/EV and Max Life at 3.7x. Hence, we believe that valuation is reasonable and we recommend 'SUBSCRIBE' to the issue, with a medium-to-long term perspective.

Purpose of IPO

Promoters are diluting their equity stake in the company to the public by way of an OFS. Hence, the entire proceeds from the OFS will be paid to ICICI Bank and the company will not receive any proceeds.

Key Risks..

- Changes in the regulatory environment could materially impact the performance of the company.

- Increasing competition in the Indian insurance industry.

Shares of ICICI BANK LTD. was last trading in BSE at Rs.267.55 as compared to the previous close of Rs. 270.65. The total number of shares traded during the day was 1811766 in over 9935 trades.

The stock hit an intraday high of Rs. 275.6 and intraday low of 266.4. The net turnover during the day was Rs. 489688594.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

The Pitch Report - Call Update: Bombay Burmah Trading Corporation - BUY - TP Rs.2025
Views on Wipro Limited Q2FY2018 Results: Angel Broking
IndusInd Bank Q2FY18 Result Update - Rating - HOLD - Arihant Capital Markets
Insurance: Select large players drive growth - Kotak
Views on Tata Consultancy Services Limited Q2FY2018 Results: Angel Broking
Metals & Mining (Attractive): 2QFY18 preview-good for all - Kotak
Energy: 2QFY18E preview—strong quarter across the board - Kotak
South Indian Bank (SIB IN) - Earnings update - PAT declined owing to exceptional provision - CSEC Research
The Pitch Report - Call Update: BBTC - ACCUMULATE - TP Rs.1613 - Kotak
Result Update: Cyient Ltd - ACCUMULATE - TP Rs.576 - Kotak
Result Update: TV18 Broadcast Ltd - BUY - TP Rs.50 - Kotak
Lakshmi Vilas Bank (LVB IN) - Earnings update - Provisions surged leading to steep fall in PAT - CSEC Research
Cement prices - on a weak footing - Kotak
Company Update: Engineers India Ltd - BUY - TP Rs.182 - Kotak
Company Update: Insecticides (India) Ltd - SELL - TP Rs.830 - Kotak
Logistics: Another blow to the e-way bill and thus to prospects of formalizing the sector - Kotak
Cement: 2QFY18 preview-healthy volumes, costs outweigh realizations - Kotak
Company Update: Time Technoplast Ltd - ACCUMULATE - TP Rs.216 - Kotak
Bumper profits ahead for Natco Pharma: Angel Broking
Banks : More questions than answers : New pricing regime likely to be introduced to replace MCLR/base rate - Kotak
Economy: RBI retains inflation focus - Kotak
BFSI : 2QFY18 preview: muted quarter for banks; stronger for NBFCs - Kotak
Telecom: LTE - 40% of data users, 80%+ of usage - Kotak
Energy - OMCs (BPCL | HPCL | IOCL): Some relief, but not enough - Kotak
Auto sales numbers for the month of September: Angel Broking
Technology: Accenture FY2018 guidance signals no change in demand trend - Kotak
Stock Picks - Maruti Suzuki, Federal Bank - Arihant Capital Market
Company Update: Gujarat Alkalies & Chemicals (GACL) - SELL - TP Rs.540 - Kotak
Stock Picks - Hero MotoCorp, Ultratech Cement - Arihant Capital Markets
Company Update: Maruti Suzuki India Limited (MSIL) - BUY - TP Rs.9061 - Kotak
Power: Monthly Tracker, September 2017 - Kotak
Consumer Products (Cautious): Observations: field trip to Patna - Kotak
Reliance Home Finance (RHFL) listed today and it is trading at 4.6x FY2017 book value: Angel Broking
Stocks Picks - TVS Motors, TCS & DCB Bank - Arihant Capital Markets Ltd
Result Update: AksharChem India Ltd - ACCUMULATE - TP Rs.800 - Kotak
Initiating Coverage: VIP Industries Ltd - BUY - TP Rs.325 - Kotak
Company Update: KNR Constructions Ltd - BUY - TP Rs.236 - Kotak
Top Stock Picks by Arihant Capital Market
Chhota (to) MOTA ideas - CALL UPDATE: Venky's India Ltd - BUY - TP Rs.2650 - Kotak
Gabriel India Limited (GABR IN) - Shift in strategy to accelerate the growth - Initiating Coverage - CSEC Research
Banks : Some signs of life; but still weak | Sanctions made in the private corporate sector undertaken by banks/FIs - Kotak
Petroleum minister's clarification on not interfering with auto fuels pricing is a relief
Energy - OMCs (BPCL | HPCL | IOCL): A false but worrying alarm - Kotak
Company Update: Mangalore Refinery and Petrochemicals Ltd (MRPL) - BUY - TP Rs.155 - Kotak
RIL scales uncharted highs - Jio Dhan Dhana Dhan: Angel Broking
Energy-Petroleum consumption: Weakness in industrial fuels; base affects auto fuels - Kotak
Company Update: GE Shipping Company (GESCO) - BUY - TP Rs.530 - Kotak
The Pitch: BSE Ltd - BUY - TP Rs.1170 - Kotak Securities
Cess hike breather for automobile companies, removes hangover on the stocks: Angel Broking
Demerger in CESC Ltd - Kotak PCG Research


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2017