ICICI Prudential Life Reports 26% Profit Growth in H1
ICICI Prudential Life Insurance Company Limited reported strong financial results for the first half of the fiscal year. Profit after tax grew 26% year-on-year to ₹601.00 crore. Value of New Business reached ₹1,049.00 crore with a 24.5% margin. Embedded Value increased by 9.7% to ₹50,501.00 crore. Total premium rose 9.2% to ₹21,251.00 crore, while New Business Sum Assured increased 19.3% to ₹6.77 lakh crore. The company maintained a diversified product mix and improved operational efficiency, reducing its cost-to-premium ratio. ICICI Prudential Life also reported strong customer-centric metrics and a robust capital position with a solvency ratio of 213.2%.
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ICICI Prudential Life Insurance Company Limited has reported a strong financial performance for the first half of the fiscal year, with profit after tax (PAT) growing 26% year-on-year to ₹601.00 crore.
Key Financial Highlights
- Value of New Business (VNB) stood at ₹1,049.00 crore with a margin of 24.5%
- Embedded Value (EV) grew by 9.7% year-on-year to ₹50,501.00 crore
- Total premium increased by 9.2% year-on-year to ₹21,251.00 crore
- New Business Sum Assured rose by 19.3% year-on-year to ₹6.77 lakh crore
Business Performance
The company's Annualised Premium Equivalent (APE) stood at ₹4,286.00 crore for the first half, with a 2-year CAGR of 10.3%. The total in-force sum assured, representing the quantum of life cover for customers, grew by 15.9% year-on-year to ₹42.16 lakh crore.
ICICI Prudential Life maintained a well-diversified product mix, with APE contributions as follows:
| Product Type | Contribution |
|---|---|
| Linked products | 48.1% |
| Non-linked | 21.8% |
| Protection | 19.3% |
| Group funds | 5.8% |
| Annuity | 5.0% |
Operational Efficiency
The company reported improvements in operational efficiency:
- Cost-to-premium ratio reduced by 280 basis points to 19.2%
- Cost-to-premium for the savings business decreased by 280 basis points to 12.7%
Customer-Centric Metrics
ICICI Prudential Life demonstrated strong customer-centric performance:
- 13th month persistency ratio stood at 85.3%
- Claim settlement ratio of 99.3%
- Average turnaround time of 1.1 days for non-investigated individual death claims
Capital Position and Investments
The company maintained a robust capital position:
- Solvency ratio of 213.2% as of September 30, well above the regulatory requirement of 150%
- Assets under management (AUM) stood at ₹3.21 lakh crore
- 96.2% of fixed income investments were in sovereign or AAA rated instruments
Management Commentary
Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, commented on the results: "We welcome the Indian Government's recent GST reforms aimed at making life insurance affordable and accessible. We have passed on the benefit of GST exemption to our customers, enabling them to enjoy savings on their premium payments."
He added, "The early trends indicate a positive response post the GST exemption. We have observed growth in website traffic, both lead volumes and conversion rates across product segments, indicating enhanced customer traction. Specifically, the effect of GST exemption has been more pronounced in the retail protection category."
Future Outlook
ICICI Prudential Life's management is prioritizing increasing absolute Value of New Business (VNB) rather than focusing on margins. This strategic shift aligns with the company's focus on profitable growth and operational efficiency.
Historical Stock Returns for ICICI Prudential Life Insurance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.49% | -0.33% | -0.72% | +0.02% | -18.96% | +40.76% |
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