At first glance, the growth story of ICICI Prudential Life Insurance Co. Ltd seems to show its first crack, because of a sharp fall in the annualized premium equivalent (APE) for the first quarter of 2018-19.
The second largest private sector life insurer’s savings products had few takers in the first quarter, with APE falling 21.2% to ₹1,282 crore. This dampened the growth in total premium to just 13%. Put this together with an increase in cost ratios and the picture doesn’t look good. Perhaps investors had anticipated that the insurer’s past rapid growth won’t be repeated, as the stock has dropped 12% over the last two months.
