Last Updated on October 26, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
Promoted by ICICI Bank, ICICI Prudential Life Insurance Company Limited – or ICICI Prudential Life for short – became operational in 2001. In 2015, it became India’s first private life insurance company to have ₹ 1 trillion as assets under management (AUM). The company also holds the distinction of being the first private life insurer to be listed on both the premier stock exchanges of India, the BSE and the NSE. ICICI Prudential Life offers term, life, health, guaranteed returns, retirement, pension, endowments, children’s, and unit linked insurance plans.
The company posted healthy consolidated results for the quarter and half-year ending 30 Sep, 2023. With some marginal downswings in a few areas, overall the H1 and Q2 FY 23-34 results were pretty much in line with the estimates from analysts. Here’s a snapshot of the key facts and figures posted by ICICI Prudential Life Insurance Company Limited.
Additional Read: Q2 Results Dashboard
H1 Performance Highlights
- Value of New Business (VNB): ₹ 1,015 Cr
- Embedded Value (EV): ₹ 38,529 Cr
- Annualised Premium Equivalent (APE): ₹ 3,523 Cr
- New Business Premium: ₹ 7,410 Cr
- Profit After Tax (PAT): ₹ 451 Cr
ICICI Prudential Life increased its assets under management from ₹ 2,44,279 Cr in H1 FY 23 to ₹ 2,71,903 Cr in H1 FY 24. Along with this the profit after tax leaped 27.0% YoY to reach ₹ 451 Cr for the period. The Annualised Premium Equivalent (APE) also increased slightly and stood at ₹ 3,523 Cr for H1 and ₹ 2,062 Cr for Q2 FY 24.. The Embedded Value (EV) grew 18% ₹ 32,648 Cr to ₹ 38,529 Cr as of Sep 30, 2023.
On the other hand, Value of New Business (VNB) fell to ₹ 1,015 Cr. So did the VNB margin which dropped from 31% to 28.8% for the first half of the ongoing financial year. The new business premium for the 6-month period stood at ₹ 7,410 Cr. Total expenses grew 27% YoY to reach ₹ 3,432 Cr. The earnings per share for Q2 FY 24 were ₹ 1.69 and for H1 FY 24 were ₹ 3.13.
H1 Operational Highlights and Key Ratios
- Average APE by product categories: ₹ 118,928
- ULIP: ₹ 1,77,057
- Non-linked savings: ₹ 119,748
- Protection: ₹ 23,086
- VNB mix: Savings non-linked (53.4%), Protection (39.3%), Linked (2.01%)
- Solvency ratio: 199.4%
- High persistency ratio (13th month) of 86.6% showing trust and loyalty among customers
- Cost ratio/total weighted received premium (Cost/TWRP): 21.6%
- More than ₹ 39 million contributed to various CSR initiatives
- ~3.5 million monthly digital service interactions
- Over 4 million policyholders with e-Insurance accounts
- Over 18,000 advisors hired in the first half of the current financial year taking the total tally to 203,000+ advisors
- 105 partnerships added in H1 FY 23-24
Also Read: ICICI Prudential Life Insurance Share Price
Protection
In H1 FY 23-34, the specific APE of the company’s retail protection business segment saw a whopping jump of 73.7% with an overall APE protection mix of 20.8% and a value of ₹ 238 Cr. Total protection APE reached ₹ 734 Cr. New Business Sum Assured (NBSA) for the retail business grew by 52% YoY to go above 1 Lakh Cr and the total NBSA stood at 4.9 Lakh Cr for the period between Apr to Sep, 2023. Although the solvency ratio of 199.4% was well above the regulatory requirement of 150%, it was marginally lesser than the same period last year in which it stood at 200.7%.
Persistency
Persistency ratio that measures the quality of business and percentage of customers continually renewing their premium reached a near-industry high of 86.9% (13th month persistency ratio). This was an improvement of 100 basis points. The 49th month persistency ratio also showed sharp improvement of 220 basis points and reached 65.8%. There were zero NPAs reported for the period under discussion.
Productivity
When it comes to productivity in H1 FY 24, the cost ratio calculated using the cost vs. Total Weighted Received Premium (TWRP) method was at 26.2%. For the savings LOB specifically, it stood at 17.2% for the period.
Awards and Recognition
- Asia’s Best CSR Practices Awards – CMO Asia
- Excellence in CSR & Sustainability – National Awards
- Organisational excellence & contribution to the insurance sector – ASSOCHAM
- Best Data/Analytics Team of the Year, Best Use of Data & Insights in a Transformation Project, Best Use of Mobile to Enhance Customer Experience, Best Data Enablement Campaign in a Loyalty Programme – Customer FEST Awards 2023
- Top 30 Top Corporate Communication Teams – Reputation Today Awards
Also Read: ICICI Bank Q2 Results
YoY and QoQ Performance Comparison
| H1 FY24 | H1 FY23 | Q2 FY24 | Q2 FY23 | |
| Net premium earned | ₹ 17,042 Cr | ₹ 16,466 Cr | ₹ 10,022 Cr | ₹ 9,582 Cr |
| Investment income | ₹ 23,689 Cr | ₹ 4,526 Cr | ₹ 7,362 Cr | ₹ 13,022 Cr |
| Total Income | ₹ 40,829 Cr | ₹ 21,064 Cr | ₹ 17,436 Cr | ₹ 22,642 Cr |
| Total Expenses | ₹ 40,373 Cr | ₹ 20,709 Cr | ₹ 17,188 Cr | ₹ 22,443 Cr |
| Profit Before Tax | ₹ 457 Cr | ₹ 355 Cr | ₹ 248 Cr | ₹ 199 Cr |
| Profit After Tax | ₹ 451 Cr | ₹ 355 Cr | ₹ 244 Cr | ₹ 199 Cr |
Source:
https://www.iciciprulife.com/content/dam/icicipru/about-us/BusinessPresentations/FY2023/SEBI_Results_Q2_FY2024.pdf
https://www.iciciprulife.com/content/dam/icicipru/aboutus/BusinessPresentations/FY2023/Investor_presentation_H1_FY2024v27.pdf
