NSEI:ICICIPRULI

Stock Analysis Report

ICICI Prudential Life Insurance

Executive Summary

ICICI Prudential Life Insurance Company Limited provides life insurance, pension, and health insurance products to individuals and groups in India.


Snowflake Analysis

Limited growth unattractive dividend payer.

Share Price & News

How has ICICI Prudential Life Insurance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ICICIPRULI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

ICICIPRULI

0.7%

IN Insurance

-0.07%

IN Market


1 Year Return

57.2%

ICICIPRULI

44.6%

IN Insurance

9.5%

IN Market

Return vs Industry: ICICIPRULI exceeded the Indian Insurance industry which returned 44.6% over the past year.

Return vs Market: ICICIPRULI exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

ICICIPRULIIndustryMarket
7 Day2.8%0.7%-0.07%
30 Day-4.8%-5.1%-1.3%
90 Day-2.3%-1.8%1.9%
1 Year58.1%57.2%45.5%44.6%11.5%9.5%
3 Year43.2%38.3%23.1%14.4%23.6%16.7%
5 Yearn/a22.7%9.9%35.5%22.9%

Price Volatility Vs. Market

How volatile is ICICI Prudential Life Insurance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ICICI Prudential Life Insurance undervalued compared to its fair value and its price relative to the market?

61.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICICIPRULI (₹495) is trading above our estimate of fair value (₹109.95)

Significantly Below Fair Value: ICICIPRULI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ICICIPRULI is poor value based on its PE Ratio (61.8x) compared to the Insurance industry average (53.7x).

PE vs Market: ICICIPRULI is poor value based on its PE Ratio (61.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: ICICIPRULI is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: ICICIPRULI is overvalued based on its PB Ratio (9.5x) compared to the IN Insurance industry average (8.3x).


Next Steps

Future Growth

How is ICICI Prudential Life Insurance forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICICIPRULI's forecast earnings growth (16.4% per year) is above the savings rate (6.5%).

Earnings vs Market: ICICIPRULI's earnings (16.4% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: ICICIPRULI's earnings are forecast to grow, but not significantly.

Revenue vs Market: ICICIPRULI's revenue (11.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: ICICIPRULI's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICICIPRULI's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has ICICI Prudential Life Insurance performed over the past 5 years?

-7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICICIPRULI has a high level of non-cash earnings.

Growing Profit Margin: ICICIPRULI's current net profit margins (2.5%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: ICICIPRULI's earnings have declined by -7.4% per year over the past 5 years.

Accelerating Growth: ICICIPRULI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ICICIPRULI had negative earnings growth (-5.7%) over the past year, making it difficult to compare to the Insurance industry average (10.3%).


Return on Equity

High ROE: ICICIPRULI's Return on Equity (15.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ICICI Prudential Life Insurance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ICICIPRULI has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ICICIPRULI's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: ICICIPRULI's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if ICICIPRULI has a sufficient allowance for bad loans.

Low Risk Liabilities: ICICIPRULI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ICICIPRULI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ICICIPRULI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ICICIPRULI has an appropriate level of bad loans.


Next Steps

Dividend

What is ICICI Prudential Life Insurance's current dividend yield, its reliability and sustainability?

0.32%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.6%industryaverage0.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: ICICIPRULI's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: ICICIPRULI's dividend (0.32%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: ICICIPRULI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ICICIPRULI has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.4%), ICICIPRULI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ICICIPRULI's dividends in 3 years are forecast to be well covered by earnings (35.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Narayanan Kannan (54yo)

1.7yrs

Tenure

₹43,594,879

Compensation

Mr. Narayanan Srinivasa Kannan, BE, CFA, PGDM is Chief Executive Officer, Managing Director and Whole-time Director at ICICI Prudential Life Insurance Company Ltd. since June 19, 2018. Mr. Kannan served as ...


CEO Compensation Analysis

Compensation vs Market: Narayanan's total compensation ($USD606.89K) is below average for companies of similar size in the Indian market ($USD1.10M).

Compensation vs Earnings: Insufficient data to compare Narayanan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Narayanan Kannan
CEO, MD & Whole-time Director1.7yrs₹43.59m0.014% 99.0m
Satyan Jambunathan
Chief Financial Officer4.1yrs₹30.06m0.010% 72.7m
Puneet Nanda
Deputy MD & Whole-time Director9.5yrs₹52.76m0.013% 89.1m
Vyoma Manek
Company Secretary4.8yrs₹5.06m0.000070% 497.5k
Manish Kumar
Chief Investments Officer0yrsno datano data
Vikas Gupta
Investor Relation0yrsno data0.000030% 213.2k
Deepak Kinger
Chief Risk & Compliance Officer3.6yrsno datano data
Manish Dubey
Executive VP & Chief Marketing Officer1.6yrsno datano data
Judhajit Das
Chief of Human Resources0yrsno data0.0015% 10.9m
Ajay Chowdhary
Head of Group Business0yrsno datano data

2.6yrs

Average Tenure

47.5yo

Average Age

Experienced Management: ICICIPRULI's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Narayanan Kannan
CEO, MD & Whole-time Director1.7yrs₹43.59m0.014% 99.0m
Puneet Nanda
Deputy MD & Whole-time Director9.5yrs₹52.76m0.013% 89.1m
Madras Ramachandran
Independent Chairman of the Board0.9yrs₹2.63mno data
Sandeep Batra
Additional Non-Executive Director1.3yrs₹31.28mno data
Dileep Choksi
Independent Director2.1yrs₹1.99mno data
Raghunath Hariharan
Non-Executive Director2.2yrsno datano data
Anup Bagchi
Additional Non-Executive Director1.3yrsno data0.00059% 4.2m
Vibha Rishi
Non-Executive Independent Director1.1yrs₹584.93kno data
Radhakrishnan Nair
Independent Director2.6yrs₹2.41mno data
Dilip Karnik
Independent Director3.7yrs₹1.98mno data

2.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ICICIPRULI's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ICICIPRULI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ICICI Prudential Life Insurance Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ICICI Prudential Life Insurance Company Limited
  • Ticker: ICICIPRULI
  • Exchange: NSEI
  • Founded: 2000
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: ₹710.675b
  • Shares outstanding: 1.44b
  • Website: https://www.iciciprulife.com

Number of Employees


Location

  • ICICI Prudential Life Insurance Company Limited
  • ICICI Pru Life Towers
  • 1089, Appasaheb Marathe Marg
  • Mumbai
  • Maharashtra
  • 400025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540133BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2016
ICICIPRULINSEI (National Stock Exchange of India)YesEquity SharesININRSep 2016

Biography

ICICI Prudential Life Insurance Company Limited provides life insurance, pension, and health insurance products to individuals and groups in India. It offers participating, non-participating, non-participating variable, and unit linked products. The company also provides term life, health, savings, and retirement insurance products; and pension fund management services. It distributes its products through individual and corporate agents, banks, and brokers, as well as through its own sales force and Website. The company was founded in 2000 and is based in Mumbai, India. ICICI Prudential Life Insurance Company Limited is a subsidiary of ICICI Bank Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:30
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.