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Results
19-Jan-22
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Analysis
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ICICI Prudential Life Insurance Company
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Healthy improvement in VNB margins
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ICICI Prudential Life Insurance Company has posted 2% growth in
the net profit to Rs 310.62 crore in the quarter ended December 2021 (Q3FY2022)
compared with net profit of Rs 305.55 crore in Q3FY2021.
The
Company registered 1% rise in net premium income in Q3FY2022. The commission
expenses moved up 9% and operating expense jumped 20%. Further benefits paid rose
12% in Q3FY2022.
Value of New Business (VNB) improved
20% to Rs 515 crore for Q3FY2022 over Q3FY2021. APE increased 16% to Rs 1929 crore
for Q3FY2022,
New business premium increased
10% to Rs 3787 crore for Q3FY2022 from Rs 3443 crore for Q3FY2021.
New business sum assured increased
24.7% to Rs 513163 crore for 9MFY2022, a growth of 24.7% as compared to Rs
411500 crore for 9MFY2021. Based on new business sum assured, the Company
continued to maintain a leadership within the private life insurance sector.
The Company has strong focus on
improving the quality of business and customer retention which is reflected in
13th and 61st month persistency ratios. Our 13th month persistency ratio was
stable at 84.8% at December 2021 as compared to March 2021. Our 61st month
persistency ratio improved to 52.7% at December 2021 as compared to 49.8% to
March 2021.
Total expenses grew by 25%
year-on-year to Rs 3505 crore for 9MFY2022. The growth in expense was lower
than the new business growth which stood at 30% for the same period. Our
overall cost to TWRP stood at 17.7% in 9MFY2022.
The total assets under management of
the Company was Rs 237560 crore at December 31, 2021 which makes it one of the
largest fund managers in India. The Company had a debt-equity mix of 52:48% end
December 2021. About 97.8% of the debt investments are in AAA rated and
government bonds.
Company’s net worth was Rs 9086 crore
at December 31, 2021. The solvency ratio was 202.2% against regulatory
requirement of 150%.
Mr. N S Kannan, MD & CEO, ICICI
Prudential Life Insurance said, “We have maintained positive momentum in
business and profitability, and have registered a strong year-on-year growth of
35% in the Value of New Business for 9MFY2022. Given the environment, financial
security for self and family including retirement planning has assumed greater
significance with growth of 30% in New Business Premium for 9MFY2022. Further,
almost half of our New Business Premium for 9MFY2022 has been contributed by
the Protection and Annuity segments. With this strong performance and continued
focus on the 4P strategy, we remain on track to achieve our aspiration of doubling
the FY2019 VNB by FY2023.
During the quarter, we became a
signatory to the United Nations supported Principles of Responsible Investment
(UNPRI), the first Indian insurance company to do so. This demonstrates our
commitment to sustainability. Also, we are the first insurance company in India
to offer an ESG-focused fund to our customers. As we continue to develop
innovative products, leverage technology, expand distribution across platforms
and geographies, we remain committed to our vision of securing the protection
and long-term saving needs of customers with sensitivity.”
Financial Performance 9MFY2022
Profit after tax has decreased from Rs
896 crore in 9MFY2021 to Rs 569 crore in 9MFY2022.
Net premium earned (gross premium less
reinsurance premium) increased by 8.9% from Rs 23094 crore in 9MFY2021 to Rs
24962 crore in 9MFY2022.
Value of New Business (VNB) for 9MFY2022
was Rs 1388 crore, a growth of 34.8% over 9MFY2021. With an APE of Rs 5125
crore for the 9MFY2022, VNB margin was 27.1% for 9MFY2022 as compared to 25.1%
for FY2021.
New business premium was Rs 10248
crore for 9MFY2022, a growth of 29.7% as compared to Rs 7899 crore for 9MFY2021.
APE was Rs 5125 crore for 9MFY2022, a growth of 29.6% as compared to Rs 3954
crore for 9MFY2021.
During 9MFY2022, retail traditional
savings APE grew by 33.9% from Rs 1127 crore in 9MFY2021 to Rs 1509 crore in 9MFY2022,
resulting in an improvement in share of APE from 28.5% in 9MFY2021 to 29.4% in
9MFY2022. Protection APE grew by 21.8% year on year to Rs 856 crore and the
protection mix stood at 16.7% in 9MFY2022.
Total investment income of Rs 24217
crore in 9MFY2022 comprised income of Rs 19505 crore (Investment income 9MFY2021:
Rs 36944 crore) under the unit-linked portfolio and an investment income of Rs
4712 crore (9MFY2021: Rs 3812 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 decrease in investment income under unit
linked portfolio is primarily on account of decrease in market value of the
securities held.
Other income increased from Rs 71
crore in 9MFY2021 to Rs 82 crore 9MFY2022.
Total expenses (including commission)
increased by 23.6% from Rs 3295 crore in 9MFY2021 to Rs 4072 crore in 9MFY2022.
Commission expense (including rewards) increased by 18.3% from Rs 943 crore in
9MFY2021 to Rs 1116 crore in 9MFY2022. New business commission (including
single premium) has increased from Rs 623 crore in 9MFY2021 to Rs 783 crore in
9MFY2022.
Renewal commission has increased from
Rs 274 crore in 9MFY2021 to Rs 281 crore in 9MFY2022. Operating expenses of Rs
2956 crore in 9MFY2022 (9MFY2021: Rs 2352 crore) include unit fund expenses
(including goods and service tax on linked charges) under the unitlinked
portfolio amounting to Rs 518 crore (9MFY2021: Rs 486 crore), which is directly
offset by a change in valuation of policyholder liabilities. Operating expenses
of other than unit linked portfolio increased by 30.7% from Rs 1866 crore in 9MFY2021
to Rs 2438 crore in 9MFY2022 primarily on account of increase in expenses
relating to employee remuneration and welfare benefits, advertisement cost, and
interest on sub debt.
Claims and benefit payouts increased
by 49.1% from Rs 14323 crore in 9MFY2021 to Rs 21355 crore in 9MFY2022
primarily on account of increase in surrender/withdrawals and death claims. The
Company had COVID-19 claims (net of reinsurance) of Rs 982 crore.
Change in actuarial liability,
including funds for future appropriation, decreased from Rs 45253 crore in 9MFY2021
to Rs 23192 crore in 9MFY2022. Fund reserve, which represents liability carried
on account of units held by unit linked policyholders, decreased from Rs 37360
crore in 9MFY2021 to Rs 13683 crore in 9MFY2022. Non-unit reserve increased
from Rs 7828 crore in 9MFY2021 to Rs 9555 crore in 9MFY2022.
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ICICI Prudential Life
Insurance: Results Standalone Policyholders Account
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2112 (3)
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2012 (3)
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Var %
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2112 (9)
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2012 (9)
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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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9073.97
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8970.84
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1
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24962.35
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23094.09
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8
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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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736.96
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19278.25
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-96
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23493.07
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40294.80
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-42
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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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29.09
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23.42
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24
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79.81
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70.62
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13
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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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25.32
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275.29
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-91
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1183.53
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981.08
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21
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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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9865.34
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28547.80
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-65
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49718.76
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64440.59
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-23
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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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420.83
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386.07
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9
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1116.47
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942.64
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18
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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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837.84
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700.62
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20
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2374.32
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1834.52
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29
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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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179.84
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168.01
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7
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515.76
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495.65
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4
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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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7664.61
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6817.44
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12
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21355.06
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14323.27
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49
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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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305.85
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20046.97
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-98
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23237.39
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45187.49
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-49
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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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47.44
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24.14
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97
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73.48
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82.18
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-11
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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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9456.41
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28143.25
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-66
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48672.48
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62865.75
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-23
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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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408.93
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404.55
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1
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1046.28
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1574.84
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-34
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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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362.65
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410.04
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-12
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1092.12
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1509.29
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-28
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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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2112 (3)
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2012 (3)
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Var %
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2112 (9)
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2012 (9)
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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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362.65
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410.04
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-12
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1092.12
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1509.29
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-28
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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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118.50
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212.97
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-44
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847.28
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510.05
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66
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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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481.15
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623.01
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-23
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1939.40
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2019.34
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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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24.46
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16.82
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45
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73.56
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36.64
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101
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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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25.32
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275.29
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-91
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1183.53
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981.08
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21
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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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120.75
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4.30
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-
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112.84
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33.89
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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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170.53
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296.41
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-42
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1369.93
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1051.61
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30
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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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310.62
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326.60
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-5
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569.47
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967.73
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-41
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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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0.00
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21.05
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-
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0.00
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71.37
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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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310.62
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305.55
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2
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569.47
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896.36
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-36
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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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8.6
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8.5
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5.3
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8.3
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6.7
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7.4
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* on current equity of
Rs 1437.29 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to
Profit,
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Figures in crore,
Source: Capitaline Corporate Database
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