ICICI Prudential Life stock under pressure; details here

CNBC-TV18 had reported earlier this week that re-insurance rates were going up sharply for term life policy premiums. Companies in turn have started taking price hikes. However, as ICICI Prudential Life Insurance revealed - the price hikes fall short.

On January 18, 2022, ICICI Prudential reported its numbers and overall the numbers looked good. However, the stock is down more than 7 percent in today’s trading session. Two key reasons for it are – one with respect to protection prices haven’t been hiked way too much for what the street was anticipating. This means that ICICI Prudential will be passing on very marginal part of the re-insurance rate hike to the end consumer and will be absorbing a large portion of it. The street is concerned that the impact of this high absorption of re-insurance rate will have an impact on the margin of the company.

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