ICICI Prudential Life Insurance posts performance for Q1FY23, VNB grew 32% – result Highlights

APE grew by 24.7% year-on-year to Rs. 15.20 billion in Q1-FY2023. Within this, annuity APE registered a strong growth of 69.0% year-on-year to Rs. 0.98 billion in Q1-FY2023

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ICICI Prudential Life Insurance has posted a strong financial performance for Q1-FY2023 registering a 31.6% growth in its Value of New Business (VNB), a measure of profitability of the Company. The VNB of the Company stood at Rs.4.71 billion with a VNB margin of 31.0%.

Annualised Premium Equivalent (APE) registered a strong growth of 24.7% year-on-year.

The Company’s New Business Sum Assured grew by 24.9% year-on-year to Rs. 2.21 trillion in Q1-FY2023. Significantly, the Company has achieved overall market leadership with the market share increasing from 14.7% in Q1-FY2022 to 15.8% in Q1-FY2023.

Persistency ratios have improved across all cohorts. The 13th month ratio, which is representative of the quality of business, stood at 85.5% for Q1-FY2023.

A) Performance Highlights

  • VNB (value of new business) grew by 32% in Q1-FY2023
  • VNB Margin expands to 31% (up 300 bps over FY2022)
  • APE grew by 25% y-o-y in Q1-FY2023
  • New Business Sum Assured grew by 25% y-o-y in Q1-FY2023
  • Market leadership on New Business Sum Assured with market share of 15.8%

B) Company Performance:

Value of New Business (VNB) growth

The VNB for Q1-FY2023 grew by 31.6% year-on-year to Rs. 4.71 billion. The VNB margin for Q1-FY2023 stood at 31.0%, up from 28.0% for FY2022.

C) Progress on its 4P strategy :

ICICI Prudential Life Insurance q1fy23 result highlights

Premium Growth

APE grew by 24.7% year-on-year to Rs. 15.20 billion in Q1-FY2023. Within this, annuity APE registered a strong growth of 69.0% year-on-year to Rs. 0.98 billion in Q1-FY2023.

Protection

Protection APE grew by 22.2% year-on-year to Rs. 3.30 billion in Q1-FY2023. The protection mix stood at 21.7% of APE in Q1-FY2023, up from 17.0% in FY2022.

As a result of the focus on premium growth and protection business, New Business Sum Assured grew by 24.9% year-on-year to Rs. 2.21 trillion in Q1-FY2023. The Company’s market share, based on Total New Business Sum Assured, increased from 13.4% in FY2022 to 15.8% in Q1-FY2023, resulting in overall market leadership.

Persistency

Persistency ratios have improved across all cohorts. The 13th month ratio, which is representative of the quality of business stood at 85.5% for Q1-FY2023. Assets under Management stood at Rs. 2,300.72 billion at June 30, 2022.

Productivity

The overall cost ratio i.e. Cost/Total Weighted Received Premium (TWRP) stood at 23.8% in Q1-FY2023. The cost ratio for the savings line of business stood at 16.9% in Q1-FY2023.

D) Solvency Ratio :

The solvency ratio was 203.6% against the regulatory requirement of 150%.

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