ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) reported mixed results for the first quarter, with a decline in Annual Premium Equivalent (APE) but significant growth in profit after tax (PAT).

Key Performance Highlights

• APE Decline: The company's APE declined by 5% year-on-year to ₹18.64 billion.
• Retail APE: Retail APE fell by 9.2% to ₹15.12 billion.
• Profit Growth: Despite the APE decline, profit after tax grew by 34.2% to ₹3.02 billion.
• VNB and Margin: Value of New Business (VNB) stood at ₹4.57 billion with a VNB margin of 24.5%, up from 22.8% for the previous full year.
• Total Premium: Total premium grew by 8.1% year-on-year to ₹89.54 billion.
• Assets Under Management: AUM grew by 5.1% year-on-year to ₹3.2 trillion.

Business Segment Performance

• Non-linked Savings: Grew by 20.8% year-on-year, contributing 21.5% to APE.
• Linked Business: Declined by 13.6% year-on-year, contributing 46.8% to APE.
• Protection Business: Grew by 15.2% year-on-year, contributing 21.9% to APE.
• Retail Protection: Showed strong momentum with 24% year-on-year growth.
• Annuity Business: Declined 53.3% year-on-year due to a high base effect.
• Group Funds Business: Grew by 53.7% year-on-year, contributing 4.4% to APE.

Channel-wise Performance

Market Factors and Business Strategy

The company attributed the decline in APE to market volatility affecting linked products and a high base from the previous year's 47% growth. However, the shift towards guaranteed products amid equity market uncertainty benefited the non-linked savings business.

ICICI Prudential Life continues to focus on product innovation, distribution expansion, and cost optimization. The company launched 'Smart Insurance Plan Plus' for affordable wealth creation and 'iProtect Smart Plus' in the protection segment.

Financial Metrics and Efficiency

• Persistency: 13-month persistency stood at 86%, and 49-month persistency at 69.8%.
• Claims Settlement: Achieved a 99.6% claim settlement ratio with an average turnaround time of 1.1 days for non-investigated individual claims.
• Cost Efficiency: Cost-to-premium ratio improved by 280 basis points to 21.2%.
• Solvency Ratio: Remained strong at 212.3%.

ICICI Prudential Life's Managing Director and CEO, Anup Bagchi, commented on the results, stating, "We remain focused on improving customer experience and delivering value to our customers. Our robust risk management architecture is exhibited in our strong and resilient balance sheet."

The company continues to adapt to changing market conditions and customer preferences, focusing on sustainable growth in Value of New Business while maintaining a customer-centric approach across its operations.

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.