ICICI Prudential Life Q4 results preview

ICICI Prudential Life Q4 results preview

ICICI Prudential Life Q4 results in the preview

ICICI Prudential Life Q4:

In the sense of a lockdown due to Coronavirus pandemic, the ICICI life insurance firm, In a statement on April 11, HDFC Securities announced that it expected that in the fourth quarter ICICI Prudential would record a 14.3% decrease of its gross annualised premium equivalent (APE) as a result of the company’s 9.9% decrease in January-February revenue. Prudential Life Insurance, will be subject to mutilated profits in the 4th quarter. 

In March, private life insurances announced a cumulative decrease of 34.22% compared to one year earlier.  A total of Rs 80,919.40 crore for the year ended March 31 raised their premiums year-on-year to a total of 11.64% (YoY).

ICICI Prudential Life announced a 32.26% decline in premiums in first years in March 2020 over March 2019 after releasing these figures, as shown on April 24.  The HDFC Securities report states that “We anticipate a value of new business (VNB) margins to moderate to 20.6%.”

The key tracking elements in the earnings announcement will consist of lock-down results and FY21E’s sales guidance as well as security shares and persistence trends.

Kotak Institutional Equities pointed out on 24 April that poor capital markets and lower ULIP high-ticket markets led to a rapid (lower) APE fall. 

In March 2020, APE decreased by 47% in total, which resulted in a decline of 19.5% for YoY in overall APE in 4QFY20 and a reduction of 3% in the year. “The Annuity and Protection Mix will increase in the overall APE and VNB will aid.

In our opinion, the increased tax rate after removal of DDT in FY2021E would also affect EV and VNB, “Kotak analysts stated in the statement. The company expects the VNB margin to drop to 18.3% in the March quarter from 270 bps quarter-on-quarter (QoQ).

Besides, Yesterday (April 24th) the share of Icici Prudential Life traded with the bearish trend. It traded with a loss of 23.10 points reached 338.20 INR with 6.39% down in NSE. Whereas in BSE, it traded with a loss of 24.70 points reached 336.50 INR with 6.84% down.

April 24th Stock Market Top Gainers and Losers

April 24th Stock Market: On the fifth day of the week, the stock market trading with the bearish trend. The Sensex traded with a loss of 535.86 points reached 31,327.22 level with 1.68% down. Whereas, Nifty traded with a loss of 159.50 points reached 9,154.40 level with 1.71% down.

In the border market, the S&P BSE Midcap traded with a gain of 207.05 points reached 11,464.20 with 1.77% up. Whereas, S&P BSE SmallCap traded with a gain of 151.50 points reached 10,633.54 with 1.40% up. At the same time, Nifty bank traded with a loss of 681.30 points reached 19,586.65 with 3.36% down. 

Top Gainers: Reliance Industries, Britannia Industries, Sun Pharmaceutical Industries, Cipla, and Hero Motocorp Ltd.

Losers: Bajaj Finance, Bharti Infratel, Zee Entertainment Enterprises, Bajaj Finserv, and Hindalco Industries Ltd.

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