New Delhi, April 16 -- Shares of ICICI Prudential Life Insurance Co. Ltd rose nearly 3% to Rs.583 apiece on Wednesday, reacting to its March quarter (Q4FY25) results. The performance, however, was lacklustre, with the annualized premium equivalent (APE) falling 3.2% year-on-year to Rs.3,502 crore.

The stock's gains were likely driven by two factors: margin expansion and attractive valuation. The value of new business (VNB) margin improved by 124 basis points (bps) year-on-year and 150 bps sequentially to 22.7%, perhaps helped by a better product mix.

The share of low-margin unit-linked insurance plans (ULIPs) declined, although they still accounted for 43% of APE. ULIPs saw strong demand earlier in the year amid a booming stock market b...