ICICI Prudential Life Insurance posts strong performance for Q1-FY2024
Highlights
- VNB stood at Rs. 4.38 billion with a margin of 30.0%
- Profit after tax grew by 32.7%
- Retail Protection APE grew by 61.8%
- 13th month Persistency improved to 86.4%
ICICI Prudential Life Insurance has registered a 32.7% growth in its Profit after Tax (PAT) to Rs. 2.07 billion for Q1-FY2024, exhibiting strong performance for the quarter. The Value of New Business (VNB), which represents the present value of future profits, stood at Rs. 4.38 billion with a VNB margin of 30.0% for Q1-FY2024
A comprehensive suite of products coupled with a need-based selling approach has resulted in the New Business Sum Assured, an indicator of the life cover opted for by customers, growing by 8.8% to Rs. 2,403.04 billion for Q1-FY2024. During the same period the retail protection Annualised Premium Equivalent (APE) registered a strong year-on[1]year growth of 61.8% to Rs. 1.10 billion.
A well-diversified distribution network is enabling the Company to reach out to a wider cross-section of customers to drive growth. The total APE for the Company stood at Rs. 14.61 billion with minimal concentration risk from any single distributor. Similarly, data analytics & digitalisation is enabling the Company to get better customer insights. This has yielded desired results and persistency has improved across all cohorts. The 13th month persistency ratio for Q1-FY2024 improved to 86.4%.
The Company’s robust risk management framework has enabled it to have a record of zero Non-Performing Assets since inception. Also, the Assets Under Management (AUM) grew by 15.8% year-on-year to Rs. 2,664.20 billion at June 30, 2023. This is a testimony to customers placing their trust in the Company to enable them to achieve their long-term financial goals
Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “Our very purpose of existence is to provide financial security to our customers and their families. We believe we are trustees of the life savings entrusted to us by our customers to achieve their protection, retirement, health and long-term savings goals.
In Q1-FY2024, the VNB stood at ` 4.38 billion, with a margin of 30%, while PAT grew 33% year-on-year to ` 2.07 billion. With customer-centricity at the core, we will continue to focus on growing the absolute VNB, through the 4P strategy comprising Premium growth, Protection focus, Persistency improvement and Productivity enhancement.
Through Q1-FY2024, we have observed an improving trend in business, with double digit growth in APE for the month of June 2023. Our efforts towards expanding the protection business are visible in the 62% year-on-year growth in the retail protection segment and this has led to the overall protection business contributing nearly a quarter of the total APE. Further, our well-diversified distribution network has ensured we have minimal concentration risk from any single distributor. Our persistency across cohorts has further improved, reflecting our need-based selling approach, with the 13th month persistency at 86.4%
To improve our performance across the 4P strategic elements, we have institutionalised a 4D framework comprising Data analytics, Diversified propositions, Digitalisation and Depth in Partnerships, with a focus on developing a quality business in a risk-calibrated manner. This framework will ensure products are aligned with customer needs, are designed to meet those needs effectively, are developed with the highest quality standards, and are delivered through the most appropriate channels. Also, this framework will help us provide simplified and hassle-free processes to our customers across the product life cycle.”
About ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited.
ICICI Prudential Life began its operations in the fiscal year 2001. On a retail weighted received premium basis (RWRP), it has consistently been amongst the top companies in the Indian life insurance sector. Our Assets Under Management (AUM) at March 31, 2023 were `2,511.91 billion.
At ICICI Prudential Life, we operate on the core philosophy of customer-centricity. We offer long-term savings and protection products to meet the different life stage requirements of our customers. We have developed and implemented various initiatives to provide cost-effective products, superior quality services, consistent fund performance and a hassle-free claim settlement experience to our customers.
ICICI Prudential Life Insurance | Q1 FY2024 Results
