ICICI Prudential Life Insurance Company (ICICI Pru Life), a Joint Venture between ICICI Bank & UK-based Prudential Corporation, is the largest private sector life insurer in India in terms of Retail Weighted Received Premium (RWRP).

Brokerage firms Prabhudas Lilladher and Reliance Securities have recommended 'Subscribe' to IPO of ICICI Prudential Life Insurance.

Commenting on the investment rationale, Prabhudas Lilladher, said, ''Company from here on is focusing to improve it protection business share which is high margin and moderate opex. Hence, we believe RoEV could improve to 18-19% in medium term from 15% currently and improve post over-run margins to ~11% by FY18 from 8% currently. At the upper band of Rs 334, the company would trade at 2.43x Sep-18 EV which we believe is fully priced and hence we recommend to Subscribe for long term gains.''

Meanwhile, Reliance Securities said, ''ICICI Pru Life has delivered strong growth in total premium and new business premium in last 3 years with healthy ROE in excess of 30%. It is focusing on increasing shareholders return through sustained growth in value of new business. At higher price band of Rs 334, the issue is priced at 3.4x price to embedded value which, in our view, is reasonable compared to recent deal of HDFC Standard Life & Max Life. We expect ICICI Pru Life to deliver strong performance, going forward on the backdrop of lower insurance penetration in India. We recommend SUBSCRIBE as it in our view, the Issue provides healthy investment opportunity for the long-term investors.''

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