ICICI PLI Will Leverage Tech For Balancing Growth, Risk And Profitability: Anup

ICICI Prudential Life Insurance PAT grows to Rs8.52 bn in FY2024

Anup Bagchi, Managing Director & CEO, ICICI Prudential Life Insurance

FinTech BizNews Service    

Mumbai, April 24, 2024: ICICI Prudential Life Insurance has reported a growth of 5.1% in its Profit After Tax (PAT) to Rs 8.52 billion for FY2024. For the same period, the Value of New Business (VNB) stood at Rs 22.27 billion and the VNB margin at 24.6%.

Performance Highlights

Robust 11.5% RWRP growth in Q4-FY2024, higher than the overall industry and private life insurers

Retail APE growth of 12.0% in Q4-FY2024 & 7.3% in FY2024

Annuity & retail protection segment registers growth of 88.0% & 46.6% respectively in FY2024

Retail New Business Sum Assured (NBSA) grew by 38.3% year-on-year to Rs 2.4 trillion in FY2024. Total in-force sum assured grew by 15.6% to Rs 34.1 trillion at March 31, 2024

Embedded value grew by 18.8% to Rs 423.37 billion at March 31, 2024 Final dividend of Rs 0.60 per share

The total Annualised Premium Equivalent (APE) grew by 4.7% year-on-year to Rs 90.46 billion in FY2024. In Q4-FY2024, the Company’s Retail Weighted Received Premium (RWRP) grew by 11.5% year-on-year, outperforming both the overall industry and private life insurers for the second consecutive quarter.

Retail New Business Sum Assured (NBSA) grew by 38.3% year-on-year to Rs 2.4 trillion in FY2024. The total in-force sum assured grew by 15.6% year-on-year to Rs 34.1 trillion at March 31, 2024. The sum assured represents the quantum of life cover opted for by customers and is an indicator of customers' confidence in the Company's claims settlement ability.

The advanced machine learning models have played a pivotal role in bolstering persistency across cohorts. The 13th month persistency ratio improved by 240 basis points to 89.0% in FY2024. Similarly, the 49th month persistency ratio also improved by 430 basis points to 68.5% in FY2024.

The overall cost ratio i.e. Cost/Total Weighted Received Premium (TWRP) stood at 24.0% and the cost ratio for the savings line of business stood at 15.8% in FY2024.

The solvency ratio was 191.8% at March 31, 2024 against the regulatory requirement of 150%. The Assets Under Management (AUM) grew by 17.1% year-on-year to Rs 2.9 trillion at March 31, 2024.

The Embedded Value (EV) grew by 18.8% year-on-year to Rs 423.37 billion at March 31, 2024 and Return on Embedded Value (RoEV) was 14.1% for FY2024. Value of inforce business grew by 14.5% year-on-year to Rs 307.56 billion at March 31, 2024. The Board has approved a final dividend of Rs 0.60 per equity share for FY2024.

 Mr. Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “We have been strengthening our well-diversified distribution network, designing innovative products and processes and leveraging data analytics and other technology solutions to simplify the business. These are aimed at enriching the customer and distributor experience.

We believe simplification is the key to expanding the market and is in line with our objective to become the most customer and distributor friendly life insurer. We are the first life insurer in the country to offer an annuity product which provides customers the option to receive a 100% refund of premiums paid. In addition, we offer a long-term savings product which provides customers the flexibility to make partial withdrawals enabling them to meet liquidity requirements without disrupting the savings goal. Notably, we are also the first life insurer to pay out commissions on the same day to our distributors. Innovative products and processes underscore the Company’s strategy of providing the right product to the right customer at the right price and through the right channel.

 Our focus on the distribution front has been to build capacity and enhance efficiency. In Q4-FY2024, the retail weighted received premium grew by 11.5%, outperforming the overall industry and private life insurers. The contribution of the agency and direct business channels to the retail APE stood at 51% for FY2024.

The ICICI Pru Stack, a set of platform capabilities aids sharp customer segmentation and enables better understanding of customer needs thereby facilitating best effort adjusted outcomes for our distributors. We have also deployed Machine Learning models which enable us to introduce appropriate interventions to address customer requirements. Our 13th month persistency for the full year stood at 89.0%, reflecting the customer’s trust in the Company and our operational efficiency.

 Our industry leading claim settlement ratio of 99.2% in FY2024, with an average turnaround time of 1.3 days for non-investigated claims reflects our commitment to fulfilling the promise made to our customers and their families.

 Going forward we will continue to leverage technology to simplify products and processes and augment customer experience. We believe this will enable us to stay firmly rooted to the sustainable growth path. This is aligned with our objective of balancing growth, risk & prudence and profitability.

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