ICICI Prudential Life Insurance Company Limited has reported a strong financial performance for the first quarter, with a 34.2% year-on-year growth in Profit After Tax (PAT). The company has also announced plans for growth recovery and product innovation over the next nine months.

Financial Highlights

For the first quarter, ICICI Prudential Life reported:

• PAT of ₹302.00 crore, up 34.2% year-on-year
• Value of New Business (VNB) at ₹457.00 crore with a margin of 24.5%
• Total premium growth of 8.1% year-on-year, reaching ₹8,954.00 crore
• New Business Sum Assured growth of 36.3% year-on-year to ₹3.70 lakh crore
• Assets Under Management (AUM) of ₹3.20 lakh crore as of June 30, a 5.1% increase

Product Mix and Distribution

The company maintained a well-diversified product mix in the quarter:

ICICI Prudential Life's distribution network showed the following APE contribution:

Operational Efficiency and Risk Management

The company demonstrated improved operational efficiency:

• Cost-to-premium ratio improved from 24.0% to 21.2% year-on-year
• Cost-to-premium for savings business improved from 16.8% to 14.1%
• 13th month persistency ratio stood at 86.0%

ICICI Prudential Life maintained a strong financial position:

• Solvency ratio of 212.3%, well above the regulatory requirement of 150%
• Zero non-performing assets since inception

Growth Recovery and Product Innovation Plans

Looking ahead, ICICI Prudential Life has announced plans for growth recovery and product innovation over the next nine months. The company aims to:

1. Develop new offerings in savings, protection, and annuity segments
2. Prevent any decline in business performance
3. Focus on customer-centric product development

Management Commentary

Mr. Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, commented on the results: "Our performance demonstrates the strength and resilience of our business model. We will continue to work on our strengths, that is customer centricity, product leadership, extensive distribution network and business excellence, aided by the building blocks of people, digitalisation and analytics to help us achieve our core objective of growing the absolute VNB."

The company's commitment to sustainability and customer-centric approach was also highlighted, with 54% of policies in the savings line of business being issued on the same day and a claim settlement ratio of 99.6%.

As ICICI Prudential Life Insurance moves forward with its growth and innovation plans, the company appears well-positioned to capitalize on the expanding life insurance market in India while maintaining its focus on operational efficiency and customer satisfaction.

ICICI Prudential Life Insurance Company Limited has reported a robust financial performance for the first quarter, with a significant increase in profitability and strong growth across key business metrics.

Profit Soars by 34%

The company's Profit After Tax (PAT) witnessed a substantial year-on-year growth of 34%, rising to ₹3.02 billion from ₹2.25 billion in the same quarter last year. This impressive growth in profitability is attributed to lower new business strain, higher investment income from shareholders' investments, and increased premium income.

Premium Growth and Business Expansion

ICICI Prudential Life Insurance reported a notable 8% increase in net premium income, which grew to ₹85.03 billion. This growth was primarily driven by a significant 20% jump in single premiums. The company's total premium grew by 8.1% year-on-year, increasing from ₹82.84 billion to ₹89.54 billion.

Cost Efficiency and Operational Improvements

The company demonstrated improved cost efficiency, with operating expenses decreasing by 10.1%. This reduction in costs, coupled with the growth in premium income, contributed to the substantial increase in profitability.

Business Segment Performance

ICICI Prudential Life Insurance saw strong growth in its group insurance plans. However, the growth in Unit Linked Insurance Plans (ULIPs) slowed due to market volatility, indicating a shift in customer preferences and market conditions.

Value of New Business and Margins

The company reported a Value of New Business (VNB) of ₹4.57 billion, with a VNB margin of 24.5%, surpassing the estimated 23.6%. This increase in VNB margin demonstrates the company's focus on creating long-term value for its shareholders.

Protection Business and Sum Assured

ICICI Prudential Life Insurance continued to strengthen its protection business, with the protection Annual Premium Equivalent (APE) growing by 15.2% year-on-year to ₹4.09 billion. The company's focus on protection led to a significant 36.3% year-on-year growth in New Business Sum Assured, which rose to ₹3,714.52 billion.

Strong Solvency and Financial Position

The solvency ratio of ICICI Prudential Life Insurance remained robust at 212.3%, well above the regulatory requirement of 150%. This strong solvency position underscores the company's financial stability and ability to meet its obligations.

Management Commentary

Mr. Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, commented on the results, emphasizing the company's commitment to customer centricity, product leadership, and business excellence. He stated that the Q1 performance demonstrates the strength and resilience of their business model.

ICICI Prudential Life Insurance's strong Q1 results reflect its strategic focus on profitability, protection business growth, and operational efficiency. The company's ability to adapt to market conditions, as evidenced by the growth in group insurance plans despite ULIP slowdown, positions it well for continued success in the competitive life insurance market.