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Results
20-Oct-21
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Analysis
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ICICI Prudential Life Insurance Company
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Healthy performance on new business
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ICICI Prudential Life Insurance Company has posted 47% surge in
the net profit to Rs 444.57 crore in the quarter ended September 2021 (Q2FY2022)
compared with net profit of Rs 303.22 crore in Q2FY2021.
The
Company registered 8% rise in net premium income in Q2FY2022. The commission
expenses moved up 22% and operating expense jumped 20%. Further benefits paid surged
63% in Q2FY2022.
Value of New Business (VNB) improved
28% to Rs 515 crore for Q2FY2022 over Q2FY2021. APE increased 35% to Rs 1977 crore
for Q2FY2022,
New business premium surged
71% to Rs 2559 crore for Q2FY2022 from Rs 1499 crore for Q2FY2021. APE was Rs
1219 crore for Q2FY2022, a growth of 48% as compared to Rs 823 crore for Q2FY2021.
The company offers a range of products
across protection and savings solutions to meet the specific needs of
customers. During H1FY2022, retail traditional savings APE grew by 47.8% from
Rs 6.42 billion in H1FY2021 to Rs 9.49 billion in H1FY2022, resulting in an
improvement in share of APE from 28.1% in H1FY2021 to 29.7% in H1FY2022.
Protection APE grew by 23.3% to Rs 5.50 billion and the protection mix stood at
17.2% in H1FY2022.
New business sum assured was Rs 337416
crore for H1FY2022, a growth of 34.8% as compared to Rs 250339 crore for
H1FY2021, enabling the Company to maintain its
leadership amongst private sector life insurers with a market share of 13.2%.
The Company has strong focus on
improving the quality of business and customer retention which is reflected in
13th and 61st month persistency ratios. 13th month persistency ratio improved
to 85.1% for 5MFY2022 as compared to 84.8% for 11MFY2021. Similarly, 61st month
persistency ratio improved to 51.6% for 5MFY2022 as compared to 49.8% for
11MFY2021.
The cost to total weighted received
premium (TWRP) ratio for the savings business stood higher at 11.8% in H1FY2022
as compared to 8.8% in H1FY2021. Overall cost to TWRP stood at 17.8% in
H1FY2022. While the absolute expenses were higher as compared to the same
period last year, the increase in cost is in line with the growth in new
business.
The total assets under management of
the Company increased 31% to Rs 237087 crore end September 2021 which makes it
one of the largest fund managers in India. The Company had a debt-equity mix of
52%:48% at September 2021. 97% of the debt investments are in AAA rated and
government bonds.
Company’s net worth was Rs
8487 crore end September 2021. The solvency ratio was 193.7% against regulatory
requirement of 150%.
Embedded Value increased 17.5% to Rs
30203 crore end September 2021 from Rs 25711 crore end September 2020. The
value in force grew by 25.8% from Rs 16923 crore end September 2020 to Rs 21296
crore end September 2021.
N S Kannan, MD & CEO, ICICI
Prudential Life Insurance said, “The improvement in the pandemic situation with
each passing month, increased consumer awareness on the need for life insurance
and our suite of customer-centric products have enabled us to grow new business
by 62% sequentially this quarter. Significantly, we posted our best ever
September on monthly sales for any year since inception, aided by our
well-diversified product and distribution channel mix. Our New Business Sum
Assured grew by 35% year-on-year to Rs 3.37 trillion in H1-FY2022 and we
continued to be the private sector leader with an overall market share of
13.2%. As a result, our absolute VNB grew by 45% year-on-year to Rs 8.73
billion for H1-FY2022, demonstrating our progress towards achieving our stated
objective of doubling our FY2019 VNB by FY2023.”
“As a caring and responsible
organisation we settled all genuine claims quickly to ensure customers and
their families had the required financial support in their hour of need. I am
also delighted to share that we have received two significant awards
‘Innovation during COVID-19’ and ‘Claims & Customer Service Excellence’
from the Federation of Indian Chambers of Commerce and Industry (FICCI), a testimony
to our efforts around innovation and customer-centricity.”
Financial Performance H1FY2022
The net profit of the company has
declined from Rs 591 crore in H1FY2021 to Rs 259 crore in H1FY2022.
Value of New Business (VNB) for H1FY2022
was Rs 873 crore, a growth of 45.0% over H1FY2021. With an APE of Rs 3196 crore
for the H1FY2022, VNB margin was 27.3% for H1FY2022 as compared to 25.1% for
FY2021
New business premium was Rs 6461 crore
for H1FY2022, a growth of 45.0% as compared to Rs 4456 crore for H1FY2021. APE
was Rs 3196 crore for H1FY2022, a growth of 39.7% as compared to Rs 2288 crore
for H1FY2021.
Net premium earned (gross premium less
reinsurance premium) increased by 12.5% from Rs 14123 crore in H1FY2021 to Rs
15888 crore in H1FY2022.
Total investment income of Rs 23483
crore in H1FY2022 comprised income of Rs 19987 crore (Investment income
H1FY2021: Rs 18889 crore) under the unit-linked portfolio and an investment
income of Rs 3496 crore (H1FY2021: Rs 2376 crore) under the non-unit funds. The
investment income under unit-linked portfolio is directly offset by a change in
valuation of policyholder liabilities. The growth in investment income under
unit linked portfolio is primarily on account of increase in market value of the
securities held.
Other income increased from Rs 48
crore in H1FY2021 to Rs 53 crore H1FY2022.
Total expenses (including commission)
increased by 29.2% from Rs 2019 crore in H1FY2021 to Rs 2609 crore in H1FY2022.
Commission expense (including rewards) increased by 25.0% from Rs 557 crore in
H1FY2021 to Rs 696 crore in H1FY2022. New business commission (including single
premium) has increased from Rs 363 crore in H1FY2021 to Rs 483 crore in
H1FY2022.
Renewal commission has increased from
Rs 172 crore in H1FY2021 to Rs 176 crore in H1FY2022. Operating expenses of Rs
1914 crore in H1FY2022 (H1FY2021: Rs 1462 crore) include unit fund expenses
(including goods and service tax on linked charges) under the unit-linked
portfolio amounting to Rs 343 crore (H1FY2021: Rs 315 crore), which is directly
offset by a change in valuation of policyholder liabilities. Operating expenses
of other than unit linked portfolio increased by 36.9% from Rs 1147 crore in
H1FY2021 to Rs 1571 crore in H1FY2022 primarily on account of increase in
expenses relating to advertisement cost, employee remuneration and welfare
benefits, and interest on sub debt.
Claims and benefit payouts increased
by 82.4% from Rs 7504 crore in H1FY2021 to Rs 13690 crore in H1FY2022 primarily
on account of increase in surrender/withdrawals and death claims. The Company
had COVID-19 claims (net of reinsurance) of Rs 862 crore.
Change in actuarial liability,
including funds for future appropriation, decreased from Rs 25212 crore in
H1FY2021 to Rs 22839 crore in H1FY2022. Fund reserve, which represents
liability carried on account of units held by unit linked policyholders,
decreased from Rs 20309 crore in H1FY2021 to Rs 16500 crore in H1FY2022.
Non-unit reserve increased from Rs 4831 crore in H1FY2021 to Rs 6431 crore in
H1FY2022.
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ICICI Prudential Life
Insurance: Results Standalone Policyholders Account
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Premium earned (net)
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9286.53
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8572.19
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8
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15888.38
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14123.26
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12
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34973.37
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32878.95
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6
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Income from
Investments
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13545.83
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7949.37
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70
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22756.10
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21016.55
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8
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47437.58
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-12516.86
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LP
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Other income
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26.40
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24.35
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8
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50.74
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47.18
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8
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93.40
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80.40
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16
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Contribution from the
Shareholders` account
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270.63
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289.45
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-7
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1158.22
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705.79
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64
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1574.78
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1497.01
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5
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Total Income
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23129.39
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16835.36
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37
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39853.44
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35892.78
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11
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84079.13
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21939.50
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283
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Commission
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425.07
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349.85
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22
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695.63
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556.59
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25
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1500.22
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1586.02
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-5
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Op. expenses related
to Insurance business
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768.56
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639.98
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20
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1536.49
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1133.88
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36
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2688.26
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2846.87
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-6
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Others
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176.10
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163.58
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8
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335.93
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327.64
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3
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678.42
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868.54
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-22
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Benefits paid (Net)
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8022.86
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4909.71
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63
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13690.45
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7505.83
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82
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22640.90
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19376.60
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17
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Change in valuation of
policy liabilities
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13228.43
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10197.78
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30
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22931.55
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25140.53
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-9
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54324.10
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-5056.93
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PL
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Provision for taxation
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26.04
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35.32
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-26
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26.04
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58.02
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-55
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141.85
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131.43
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8
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Total Expense
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22647.06
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16296.22
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39
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39216.09
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34722.49
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13
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81973.75
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19752.53
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315
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PAT
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482.33
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539.14
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-11
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637.35
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1170.29
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-46
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2105.38
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2186.97
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-4
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Transfer to
Shareholders` account
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440.19
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453.11
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-3
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729.46
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1099.25
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-34
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1984.86
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1988.71
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0
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ICICI Prudential Life
Insurance: Results Standalone Shareholders Account
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2109 (3)
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2009 (3)
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Var %
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2109 (6)
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2009 (6)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Amounts transferred
from Policyholders` account
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440.19
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453.11
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-3
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729.46
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1099.25
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-34
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1984.86
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1988.71
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0
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Income from
investments
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329.66
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169.49
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95
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728.80
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297.08
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145
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768.96
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659.98
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17
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Total Income
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769.85
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622.60
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24
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1458.26
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1396.33
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4
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2753.82
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2648.69
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4
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Expenses (apart from
Insurance)
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24.55
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2.20
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1016
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49.11
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19.82
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148
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61.15
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36.37
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68
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Contribution to
policyholders account
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270.63
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289.45
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-7
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1158.22
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705.79
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64
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1574.78
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1497.01
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5
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Others
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0.00
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1.01
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-
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-7.91
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29.59
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-
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36.49
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46.56
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-
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Total Expenses
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295.18
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292.66
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1
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1199.42
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755.20
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59
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1672.42
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1579.94
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6
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PBT
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474.67
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329.94
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44
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258.84
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641.13
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-60
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1081.40
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1068.75
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1
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Tax
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30.10
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26.72
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13
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0.00
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50.32
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-
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121.25
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0.00
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-
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PAT
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444.57
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303.22
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47
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258.84
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590.81
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-56
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960.15
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1068.75
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-10
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EPS (Rs)*
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12.4
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8.4
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3.6
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8.2
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6.7
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7.4
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* on current equity of
Rs 1437.07 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to
Profit, Figures in crore, Source: Capitaline
Database
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