ICICI Prudential Life rallies 13% in two days post FY18 results

Shares of ICICI Prudential Life Insurance (IPRU) were up 5% to Rs 438 per share in early morning trade, surging 13% in past two trading sessions on the market, after the company reported better than expected results for the financial year 2017-18 (FY18).
The insurance company reported 93.1% increase in the Value of New Business (VNB) at Rs 12.86 billion in FY18 as compared to Rs 6.66 billion for FY17.

This robust growth is attributable to the growth in both savings and protection Annualized Premium Equivalent (APE) as well as improvements in persistency and cost efficiency, IPRU said in a statement.

The new business margin during the fiscal increased by 6.4 ppts to 16.5% from 10.1%, propelled by a rejig of the product mix towards increased protection products, reduction in expenses, improved profitability of ULIP and Par saving products, and changes in corporate taxation assumption.