ICICI Prudential Life Insurance Q1 PAT rises 32.7%

ICICI Prudential Life Insurance on Tuesday registered a 32.7% growth in its Profit after Tax (PAT) to Rs 207 crore for Q1-FY2024, exhibiting strong performance for the quarter. The Value of New Business (VNB), which represents the present value of future profits, stood at Rs 438 crore with a VNB margin of 30% for Q1-FY2024.

In Q1FY2024, the VNB stood at Rs 438 crore, with a margin of 30%, while PAT grew 33% year-on-year to Rs 207 crore. With customer-centricity at the core, it will continue to focus on growing the absolute VNB, through the 4P strategy comprising Premium growth, Protection focus, Persistency improvement and Productivity enhancement, the company said in the filing on Tuesday.

A comprehensive suite of products coupled with a need-based selling approach has resulted in the New Business Sum Assured, an indicator of the life cover opted for by customers, growing by 8.8% to Rs 2,403.04 billion for Q1-FY2024. 

During the same period, the retail protection Annualised Premium Equivalent (APE) registered a strong year-on-year growth of 61.8% to Rs 1.10 billion.

The Company’s robust risk management framework has enabled it to have a record of zero Non-Performing Assets since inception. Also, the Assets Under Management (AUM) grew by 15.8% year-on-year to Rs 2,664.20 billion on June 30, 2023. This is a testimony to customers placing their trust in the Company to enable them to achieve their long-term financial goals.

Mr. Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance said, “Our very purpose of existence is to provide financial security to our customers and their families. We believe we are trustees of the life savings entrusted to us by our customers to achieve their protection, retirement, health and long-term savings goals.

Through Q1-FY2024, we have observed an improving trend in business, with double-digit growth in APE for the month of June 2023. Our efforts towards expanding the protection business are visible in the 62% year-on-year growth in the retail protection segment and this has led to the overall protection business contributing nearly a quarter of the total APE. Further, our well-diversified distribution network has ensured we have minimal concentration risk from any single distributor. Our persistency across cohorts has further improved, reflecting our need-based selling approach, with the 13th-month persistency at 86.4%, Anup Bagchi added.

To improve our performance across the 4P strategic elements, we have institutionalized a 4D framework comprising Data analytics, Diversified propositions, Digitalisation and Depth in Partnerships, with a focus on developing a quality business in a risk-calibrated manner. This framework will ensure products are aligned with customer needs, are designed to meet those needs effectively, are developed with the highest quality standards, and are delivered through the most appropriate channels. Also, this framework will help us provide simplified and hassle-free processes to our customers across the product life cycle,” Anup Bagchi added.

Source: Media reports

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