On parameters which are critical for an insurance company, he said, the biggest thing for a life company is a hedge in itself. Persistency is the most critical part, he said.
R Sreesankar of Prabhudas Lilladher commented on ICICI Pru’s IPO.
The insurer’s margins are 8 percent compared to industry’s 17 percent. He said that market conditions are different now. “We also didn’t have HDFC-Max coming into the picture. Valuations are a thing of the market,” he said, adding that we have Nifty at about 8900.
Speaking about margins, he said, it depends on the product mix. ICICI Pru has a higher share of Ulips and lower margins.
He said if you are a long-term investor, you are going to see an upside by investing in ICICI Pru’s IPO.
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