ICICI Prudential Life Insurance Q3 Results

Key Highlights

ICICI Prudential Life Insurance reported a strong 17.9% growth in Profit After Tax (PAT) to ₹6.79 billion for the first nine months of fiscal 2024.

• Profit after Tax (PAT) increased by 17.9% to ₹6.79 billion.
• Value of New Business (VNB) reached ₹14.51 billion, with a VNB margin of 26.7%.
• Retail protection segment experienced a robust year-on-year growth of 55.9%.
• Total Annualised Premium Equivalent (APE) amounted to ₹54.30 billion.
• Retail New Business Sum Assured (NBSA) grew by 43.7% year-on-year to ₹1.6 trillion in 9M-FY2024.
• Total in-force sum assured increased by 17.3% to ₹32.3 trillion on December 31, 2023.
• 13th month persistency stood at 87.4% at December 31, 2023.
• Assets Under Management (AUM) grew by 13.8% year-on-year to ₹2.9 trillion at December 31, 2023.

Additional Read: Q3 Results Dashboard

Q3-FY2024 Performance 

• The Retail New Business Sum Assured (NBSA) increased by 43.7% year-on-year to ₹1.6 trillion in 9M-FY2024. The total in-force sum assured grew by 17.3% year-on-year to ₹32.3 trillion at December 31, 2023, reflecting customers’ trust in the company’s ability to settle claims.

• Advanced machine learning models improved persistence across all cohorts, with 13th and 49th month persistence ratios reaching 87.4% and 67.1%, respectively, at December 31, 2023.
• Innovation in products and processes, such as the introduction of ICICI Pru Guaranteed Pension Plan Flexi, contributed to a customer-centric approach. Approximately 40% of policies for long-term savings products were issued on the same day in Q3-FY2024.
• The company’s customer-first brand focus is evident in the 13th and 49th month persistence ratios, as well as a claim settlement ratio of 98.1% in Q2-FY2024, positioning ICICI Prudential at the top among private sector life insurers.

Company Performance

Profitability

• Profit After Tax (PAT) exhibited a robust 17.9% year-on-year growth, reaching ₹6.79 billion in 9M-FY2024.
• The Value of New Business (VNB) for 9M-FY2024 amounted to ₹14.51 billion, with an impressive VNB margin of 26.7%.
• Total Annualised Premium Equivalent (APE) for 9M-FY2024 was ₹54.30 billion.

Additional Check: ICICI Prudential Life Insurance Share Price

Progress on Premium Growth, Protection Focus, Persistency Improvement, and Productivity Enhancement:

Premium

• The Company achieved a Total APE of ₹54.30 billion in 9M-FY2024, reflecting a growth of approximately 10% in Q3-FY2024, driven by proprietary channels (agency and direct).
• New business premium reached ₹115.27 billion in 9M-FY2024, maintaining a well-balanced product mix with shares in linked, non-linked, protection, annuity, and group funds at 43.1%, 26.8%, 20.1%, 6.2%, and 3.7%, respectively.

Protection

• Retail protection APE witnessed a remarkable 55.9% year-on-year growth, reaching ₹3.43 billion in 9M-FY2024.
• Retail new business sum assured grew by 43.7% year-on-year to ₹1,639.49 billion in 9M-FY2024.
• Overall protection APE grew by 4.0% year-on-year to ₹10.92 billion in 9M-FY2024, contributing to 20.1% of APE.
• The overall new business sum assured increased by 4.4% year-on-year to ₹7,228.49 billion in 9M-FY2024.

Persistency

• Persistency ratios improved across all cohorts, with the 13th month persistency ratio increasing by 130 bps to 87.4% in 8M-FY2024.
• The 49th month persistency ratio saw an impressive improvement of 320 bps, reaching 67.1% in 8M-FY2024.

Productivity

• The overall cost ratio (Cost/Total Weighted Received Premium – TWRP) stood at 25.3% in 9M-FY2024, reflecting efficiency in cost management.
• The cost ratio for the savings line of business was notably lower at 16.3% in 9M-FY2024, indicating enhanced productivity.

Solvency Ratio

• The solvency ratio was a robust 196.5% at December 31, 2023, surpassing the regulatory requirement of 150%, showcasing the company’s strong financial health and compliance.

Protection Growth 

(₹ Billion)	H1 – FY2023	H1 – FY2024
Protection APE1	7.10	7.34
Retail Protection APE	1.37	2.38
Protection mix2	20.2%	20.8%
Sum assured	4,800.05	4,913.83

Retail protection: Strong ~74% y-o-y growth in H1-FY2024

• ¹ Includes term with return of premium; FY2023: ₹ 0.74 bn, Q1-FY2024: ₹ 0.20 bn, Q2-FY2024: ₹ 0.22 bn  
• ² As % of total APE (retail & group combined)
• APE: Annualised Premium Equivalent, Y-o-Y: Year on year
• Sum assured based on overall new business 

Productivity Improvement

(₹ Billion)	H1 – FY2023	FY 2023	H1 – FY2024	Y-o-Y Growth
Total expenses	27.02	64.75	34.32	27.0%
Cost/TWRP1	21.6%	21.5%	26.2%	–
Cost/TWRP1 (Savings LOB)	14.4%	14.2%	17.2%	–

Cost structure being realigned post regulatory changes; Capacity creation to support future growth

• ¹ Total Cost including commission/ TWRP
• TWRP: Total weighted received premium (Total premium – 90% of single premium)
• LOB: Line of business

Financial Metrics 

(₹ Billion)	H1 – FY2023	FY 2023	H1 – FY2024
Profit after tax	3.55	8.11	4.51
Solvency ratio1	200.7%	208.9%	199.4%
AUM1	2,442.79	2,511.91	2,719.03

Solvency ratio continues to be strong

1. 9M: At December 31 of respective financial years; FY: At March 31

About ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) stands as a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited, commencing its operations in the fiscal year 2001. Renowned for consistently ranking among the top companies in the Indian life insurance sector based on retail weighted received premium (RWRP), our Assets Under Management (AUM) reached ₹2,719.03 billion as of September 30, 2023.

Operationalizing on a core philosophy of customer-centricity, ICICI Prudential Life focuses on providing long-term savings and protection products tailored to meet diverse life stage requirements. Our commitment to customers is reflected in the implementation of initiatives aimed at delivering cost-effective products, superior services, consistent fund performance, and a seamless claim settlement experience.

In FY2015, ICICI Prudential Life achieved a significant milestone by becoming the first private life insurer to manage assets worth ₹1 trillion. Further emphasising our pioneering role, we proudly hold the distinction of being the first insurance company in India to be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

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