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:

Views on Axis Banks Ltd 3QFY2017 Results: Angel Broking
Views on Yes Bank Limited 3QFY2017 Results: Angel Broking
Power Sector - Results Preview - Higher Fuel Cost & Muted Demand Growth to Impact Profitability - Reliance Securities
DCB Bank - 3QFY17 Result Update -BUY- Strong Core Earnings, Stable Asset Quality - Reliance Securities
Housing Finance Companies with retail focus will continue to see strong growth: Angel Broking
Pharmaceutical - Results Preview - Mixed Performance in the US Biz; Domestic Biz to See Moderate Growth - Reliance Securities
Cyient - Result Update - BUY- Soft as Expected, Order Book Healthy - Reliance Securities
TCS - 3QFY17 Result Update - REDUCE - Good Quarter, but Top-level Rejig a Headwind - Reliance Securities
Views on Infosys Ltd 3QFY2017 Results: Angel Broking
Bajaj Corp - Result Update - BUY - Decent Performance; Recovery in Sight - Reliance Securities
Infosys - 3QFY17 Result Update - BUY - Encouraging Performance, BFSI Strength Enthuses - Reliance Securities
Views on Tata Consultancy Services Limited 3QFY2017 Results: Angel Broking
CPSE ETF Note - Further Fund Offer of CPSE ETF - Reliance Securities
Capital Goods - Thematic Report - Imminent Capex Visibility in T&D Space to Aid Key Segmental Players - Reliance Securities
FMCG - Results Preview - Demonetisation Steals the Show...Literally! - Reliance Securities
IndusInd Bank - Result Update - BUY - Stellar Performance Continues ... Reiterate BUY - Reliance Securities
Cement Monthly Sector Update - Realizations Softened on Insipid Demand - Reliance Securities
Jubilant FoodWorks - Initiating Coverage - BUY Risk Reward Ratio Turning Favourable despite Near-term Uncertainties - Reliance Securities
Cyient - Initiating Coverage - BUY - Engineered for Growth - Reliance Securities
Aurobindo Pharma - Event Update - BUY - Generis acquisition to boost margin - Reliance Securities
Initiating Coverage - KEI Industries: Angel Broking
L&T Construction Wins Orders Valued Rs. 3039 Crores
TCS (TCS IN) - Revenue growth way below street expectation - Cholamandalam Securities
Infosys (INFO IN) - Result in-line with street expectation; guidance disappoints - Cholamandalam Securities
BUY Dishman Pharma - Better traction expected from CRAMS and disinfectants: AnandRathi Institutional Research
Neutral on ICICI Prudential Life Insurance Co. Ltd. IPO - Angel Broking
ICICI Prudential Life Insurance Company Ltd - IPO Note - Religare
Fiberweb India Ltd - Set to grow at a rapid pace; initiate with BUY - BOB Capital Markets Ltd
BUY Bajaj Electricals - Growth momentum in all divisions expected in 2HFY17: AnandRathi Institutional Equity
Majesco Ltd - Well-placed to Leverage Conducive Industry Tailwinds - Reliance Securities
HCL Technologies - Event Update - Automation Focus a Key Differentiator - Reliance Securities
Aurobindo Pharma - 1QFY2017 Result Update - Angel Broking
HOLD India Cements - Subdued quarter; prices to recover: AnandRathi Institutional Research
Cement - 1QFY17 Results Review - Robust performance continues on cost benefits - Reliance Securities
NTPC 1QFY17: Result Review - In line with our expectations - Maintain BUY - Reliance Securities
KNR Constructions - 1QFY2017 Result Update - Angel Broking
BUY NRB Bearings - Margin expansion in Q1 leads to robust profitability: AnandRathi Institutional Reserach
BUY AIA Engineering - Margins likely to hold: AnandRathi Institutional Reserach
BUY Vivimed Labs - Better pharma growth, lower interest cost drive earning - Anand Rathi
Radico Khaitan - 1QFY2017 Result Update - Angel Broking
BUY KNR Constructions - Strong beginning, move toward a high-growth trajectory; AnandRathi Institutional Research
Dishman Pharmaceuticals - 1QFY2017 Result Update - Angel Broking
BUY Ahluwalia Contracts India - Steady growth intact: AnandRathi Institutional Research
BUY JK Lakshmi Cement - Strong start; growth set to endure: AnandRathi Institutional Research
Ahluwalia Contracts India Ltd - 1QFY17 Result Update - BUY - Healthy Performance Continues - Reliance Securities
Sun Pharmaceuticals - 1QFY2017 Result Update - Angel Broking
BUY MRF - Outstripping yet again: Anand Rathi Institutional Research
Bajaj Electricals - 1QFY2017 Result Update - Angel Broking
Lupin - 1QFY2017 Result Update - Angel Broking
Cadila Healthcare - 1QFY2017 Result Update - Angel Broking


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

disclaimer copyright © 2005 - 2016