Street View: India's ICICI Prudential Life faces uncertainty amid impending Prudential exit
BUZZ-Street View: India's ICICI Prudential Life faces uncertainty amid impending Prudential exit ** India's ICICI Prudential Life Insurance ICIR.NS on Wednesday posted 27.8% rise in Q1 profit y/y, value of new business up 24.9% y/y
** Prudential PRU.L, which holds a 22% stake in ICIR, said it must cut its stake to below 10% to secure regulatory approval for planned 75% stake buy in Bharti Axa Life Insurance
** ICIR last down 3.5%
RESULTS LARGELY POSITIVE, BUT PRUDENTIAL EXIT LOOMS
** Emkay Global ("add", PT 600 rupees) highlights strong margins from new business driven by 46% growth in protection segment; says expected Prudential stake sale likely to remain an overhang on share price
** Jefferies ("buy", 523 rupees) says Prudential has sought reclassification to investor status; under current rules, not required to reduce stake post reclassification
** Ambit Capital ("buy", PT 702 rupees) highlights soft growth in agency and bancassurance channels; flags concerns over likely commissions cut, banca partnership continuity following Prudential exit
** Morgan Stanley ("overweight", PT 670 rupees) says stock is pricing in no new business value growth into perpetuity, which makes up for potential stock supply after Prudential exit
(Reporting by Abhirami G in Bengaluru)