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ICICI Prudential Life Insurance Company has posted the net profit of
Rs 199.48 crore in the quarter ended September 2022 (Q2FY2023) compared with net
profit of Rs 444.57 crore in Q2FY2022.
The
Company registered 3% growth in net premium income in Q2FY2023. The commission
expenses declined 3% and operating expense jumped 37%. Benefits paid were flat in
Q2FY2023.
Value
of New Business (VNB) improved 21% to Rs 621 crore for Q2FY2023 over Q2FY2022. VNB
margin has improved to 31.0% in H1FY2023 from 27.3% in H1FY2022. APE rose 1% to
Rs 1999 crore for Q2FY2023. New business premium increased 6% to Rs 4175 crore
for Q2FY2023 from Rs 3932 crore for Q2FY2022.
The
Company offers a range of products across annuity, savings, and protection
solutions to meet the specific needs of customers. Annuity APE grew 69% to Rs 135
crore in Q2FY23 and Protection APE 36% to Rs 380 crore, while Savings APE declined
8% to Rs 1484 crore in Q2FY23.
The persistency ratios have seen significant improvements due to
the focus on improving the quality of business and customer retention.
Specifically, the 13th month and 49th month persistency ratios stood at 85.9%
and 65.4% respectively for H1FY2023.
The assets
under management of the Company rose 3% to Rs 244279 crore end September 2022.
The Company had a debt-equity mix of 53:47 end September 2022 and 97.5% of the
debt investments were in AAA rated and government bonds.
The Company’s net worth
was Rs 9630 crore end September 2022. The solvency ratio was 200.7% against the
regulatory requirement of 150%.
Embedded
value
per share stood at Rs 227.0 end September 2022. Embedded
Value was Rs 32648 crore end September 2022 compared to Rs 30203 crore end
September 2021, a growth of 8.1%. The value of inforce business grew by 16.4%
from Rs 21296 crore end September 2021 to Rs 24797 crore end September 2022.
N S Kannan, MD & CEO,
ICICI Prudential Life Insurance said, “We achieved a robust year-on-year growth
of 25.1% in the Value of New Business (VNB), ending H1FY2023 at Rs 1092 crore,
emphasising our ability to navigate rapidly-evolving situations successfully.
This was driven by growth in APE as well as margin expansion to industry
leading levels of 31%. On the back of this strong VNB growth and with a
favourable premium base for the coming months, we believe we are on track to
achieve our objective of doubling our FY2019 VNB by the end of this fiscal
year.
Our two focus areas of
annuity and protection, which represent underserved needs of the country, have
also done well in the period. The annuity segment has delivered an impressive
performance of 69% year-on-year growth in H1FY2023 and the protection segment
contributed to 20% of APE in the period. With a solvency ratio of over 200%,
which is well above the regulatory requirement, we are well positioned to
capitalise on this opportunity.
The strong performance has
also enabled us to maintain our position as the private sector market leader on
New Business Sum Assured basis, which grew by 42.3% year-on-year, with a market
share of 15.7%.”
Financial Performance H1FY2023
The Company’s profit after
tax was Rs 355 crore for H1FY2023, as compared to Rs 259 crore for H1FY2022
primarily due to lower COVID-19 claims and provisions.
Net premium earned (gross
premium less reinsurance premium) increased by 3.6% from Rs 15888 crore in
H1FY2022 to Rs 16466 crore in H1FY2023.
APE was Rs 3519 crore for
H1FY2023, a growth of 10.1% as compared to Rs 3196 crore for H1FY2022. New business
premium was Rs 7359 crore for H1FY2023, a growth of 13.9% as compared to Rs
6461 crore for H1FY2022.
Annuity APE grew from Rs
138 crore in H1FY2022 to Rs 233 crore in H1FY2023, registering a robust growth
of 68.8%. Protection APE grew from Rs 550 crore in H1FY2022 to Rs 710 crore in
H1FY2023. As a result, New Business Sum Assured was Rs 480005 crore for
H1FY2023, a growth of 42.3% as compared to Rs 337416 crore for H1FY2022,
resulting in private market leadership with a market share of 15.7%.
Persistency ratios have
significantly improved across all cohorts, reflective of the Company’s strong
focus on improving the quality of business. 13th month persistency improved
from 85.1% in 5MFY2022 to 85.9% in 5MFY2023. The 49th month persistency ratio
also improved from 64.6% in 5MFY2022 to 65.4% in 5MFY2023.
In H1FY2023, the cost to
total weighted received premium (TWRP) ratio for the savings business and the
overall cost to TWRP ratio stood at 14.4% and 21.6% respectively. In the
current financial year, the Company has been investing in building for
sustainable future growth.
Total investment income
decreased from Rs 23483 crore in H1FY2022 to Rs 4526 crore in H1FY2023.
Investment income under unit-linked decreased from Rs 19987 crore in H1FY2022
to Rs 1377 crore in H1FY2023. Investment income under unit-linked is directly
offset by change in valuation of policyholder liabilities. Decrease in
investment income is primarily on account of decrease in market value of the
securities held.
Investment income under other
than unit-linked decreased from Rs 3496 crore in H1FY2022 to Rs 3149 crore in
H1FY2023 primarily on account of decrease in profit on sale of investments
offset in part by an increase in interest income.
Other income increased
from Rs 53 crore in H1FY2022 to Rs 72 crore H1FY2023.
Total expenses (including
commission) increased by 17.5% from Rs 2610 crore in H1FY2022 to Rs 3066 crore
in H1FY2023. Commission expense increased 3.4% from Rs 696 crore in H1FY2022 to
Rs 719 crore in H1FY2023. New business commission (including single premium
commission) has increased from Rs 483 crore in H1FY2022 to Rs 491 crore in
H1FY2023. Renewal commission has increased from Rs 176 crore in H1FY2022 to Rs
179 crore in H1FY2023.
Operating expense
increased by 23.1% from Rs 1873 crore in H1FY2022 to Rs 2306 crore in H1FY2023.
Operating expenses comprised of unit fund expenses (including goods and service
tax on linked charges) amounting to Rs 325 crore (H1FY2022: Rs 343 crore) under
the unit-linked portfolio. The unit fund expenses under unit-linked portfolio
is directly offset by a change in valuation of policyholder liabilities.
Operating expenses of other than unitlinked portfolio increased by 29.5% from
Rs 1530 crore in H1FY2022 to Rs 1981 crore in H1FY2023 primarily on account of
increase in expenses relating to advertisement and publicity, employee
remuneration and welfare benefits, legal and professional charges and
information technology related expenses.
Claims and benefit payouts
(net of reinsurance) decreased by 1.1% from Rs 13690 crore in H1FY2022 to Rs
13534 crore in H1FY2023 primarily on account of decrease in death claims offset
in part by increase in surrender/withdrawal. The death claims, net of amount
ceded in reinsurance, decreased by 48.4% from Rs 2236 crore in H1FY2022 to Rs
1153 crore in H1FY2023 primarily on account of decline in COVID-19 related
death claims. The Company had COVID-19 related death claims (net of
reinsurance) of Rs 27 crore in H1FY2023 (Rs 862 crore in H1FY2022).
Change in actuarial liability,
including funds for future appropriation, decreased from Rs 22839 crore in
H1FY2022 to Rs 4022 crore in H1FY2023. Change in fund reserve, which represents
change in liability carried on account of units held by unit-linked
policyholders, decreased from Rs 16500 crore in H1FY2022 to Rs (3217) crore in
H1FY2023. The decrease in change in fund reserves is primarily due to lower
investment income in the unit linked portfolio. Non-unit reserve increased from
Rs 6431 crore in H1FY2022 to Rs 7103 crore in H1FY2023.
ICICI Prudential Life
Insurance posted strong growth of 25.1% in the Value of New Business (VNB) in
H1FY2023. VNB margin, a key measure of profitability, expanded to 31.0% and
absolute VNB, stood at Rs 1092 crore in H1FY2023. Annualised Premium Equivalent
(APE) grew sequentially by 32% for Q2FY2023 ending H1FY2023 with an APE of Rs
3519 crore and New Business Premium of Rs 7359 crore. In H1FY2023, the
Protection business segment APE grew by 29.1% year-on-year, resulting in a
protection mix of 20.2% of overall APE. APE from the Annuity business segment,
which is a key focus area, grew by 68.8% year-on-year. Due to underpenetration,
both these segments offer significant growth opportunities. The diversification
of product and distribution mix has enabled the Company to manage the impact of
external developments and respond to changing consumer preferences in an agile
manner.
The Company’s New Business
Sum Assured was Rs 4.8 trillion in H1FY2023, a growth of 42.3% year-on-year,
enabling it to maintain its private market leadership position with a market
share of 15.7%.
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ICICI Prudential Life
Insurance: Results Standalone Policyholders Account
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|
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2209 (3)
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2109 (3)
|
Var %
|
2209 (6)
|
2109 (6)
|
Var %
|
2203 (12)
|
2103 (12)
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Var %
|
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Premium earned (net)
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9581.72
|
9286.53
|
3
|
16465.92
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15888.38
|
4
|
36321.27
|
34973.37
|
4
|
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Income from
Investments
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12818.89
|
13545.83
|
-5
|
4148.05
|
22756.10
|
-82
|
24969.54
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47437.58
|
-47
|
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Other income
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38.04
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26.40
|
44
|
71.37
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50.74
|
41
|
112.59
|
93.40
|
21
|
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Contribution from the
Shareholders` account
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465.70
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270.63
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72
|
757.82
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1158.22
|
-35
|
2161.11
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1574.78
|
37
|
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Total Income
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22904.35
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23129.39
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-1
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21443.16
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39853.44
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-46
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63564.51
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84079.13
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-24
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Commission
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413.08
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425.07
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-3
|
718.99
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695.63
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3
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1672.91
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1500.22
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12
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Op. expenses related
to Insurance business
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1053.53
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768.56
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37
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1971.90
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1536.49
|
28
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3672.95
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2688.26
|
37
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Others
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164.18
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176.10
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-7
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327.04
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335.93
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-3
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719.53
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678.42
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6
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Benefits paid (Net)
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8021.89
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8022.86
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0
|
13534.37
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13690.45
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-1
|
29358.84
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22640.90
|
30
|
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Change in valuation of
policy liabilities
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12685.97
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13228.43
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-4
|
3886.10
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22931.55
|
-83
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25783.76
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54324.10
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-53
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Provision for taxation
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42.55
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26.04
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63
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86.66
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26.04
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233
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166.15
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141.85
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17
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Total Expense
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22381.20
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22647.06
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-1
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20525.06
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39216.09
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-48
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61374.14
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81973.75
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-25
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PAT
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523.15
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482.33
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8
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918.10
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637.35
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44
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2190.37
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2105.38
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4
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Transfer to Shareholders`
account
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486.07
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440.19
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10
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782.07
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729.46
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7
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2160.22
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1984.86
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9
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ICICI Prudential Life
Insurance: Results Standalone Shareholders Account
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|
|
2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Amounts transferred
from Policyholders` account
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486.07
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440.19
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10
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782.07
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729.46
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7
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2160.22
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1984.86
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9
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Income from
investments
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203.59
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329.66
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-38
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378.65
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728.80
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-48
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1013.62
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768.96
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32
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Total Income
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689.66
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769.85
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-10
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1160.72
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1458.26
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-20
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3173.84
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2753.82
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15
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Expenses (apart from
Insurance)
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24.48
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24.55
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0
|
47.73
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49.11
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-3
|
102.43
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61.15
|
68
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Contribution to
policyholders account
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465.70
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270.63
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72
|
757.82
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1158.22
|
-35
|
2161.11
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1574.78
|
37
|
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Others
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0.00
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0.00
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-
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0.00
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-7.91
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-
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119.75
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36.49
|
228
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Total Expenses
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490.18
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295.18
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66
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805.55
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1199.42
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-33
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2383.29
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1672.42
|
43
|
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PBT
|
199.48
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474.67
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-58
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355.17
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258.84
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37
|
790.55
|
1081.40
|
-27
|
|
Tax
|
0.00
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30.10
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-
|
0.00
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0.00
|
-
|
36.42
|
121.25
|
-70
|
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PAT
|
199.48
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444.57
|
-55
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355.17
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258.84
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37
|
754.13
|
960.15
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-21
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EPS (Rs)*
|
5.5
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12.4
|
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4.9
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3.6
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5.2
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6.7
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* on current equity of
Rs 1438.55 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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