 |
Results
18-Jan-23
|
|
|
|
|
|
|
|
Analysis
|
|
|
|
ICICI Prudential Life Insurance Company
|
|
VNB margins improving
|
|
|
|
|
|
ICICI Prudential Life Insurance Company has posted 29% decline in the
net profit of Rs 220.63 crore in the quarter ended December 2022 (Q3FY2023)
compared with net profit of Rs 310.62 crore in Q3FY2022.
The
Company registered 4% growth in net premium income in Q3FY2023. The commission
expenses declined 7% and operating expense jumped 27%. Benefits paid moved up
14% in Q3FY2023.
Value
of New Business (VNB) improved 20% to Rs 618 crore for Q3FY2023 over Q3FY2022. VNB
margin has improved to 32.0% in 9MFY2023 from 27.1% in 9MFY2022, supported by change
in product mix. APE declined 6% to Rs 1822 crore for Q3FY2023. New business
premium increased 4% to Rs 3928 crore for Q3FY2023 from Rs 3787 crore for Q3FY2022.
The
Company offers a range of products across annuity, savings, and protection
solutions to meet the specific needs of customers. Annuity APE grew 33% to Rs 104
crore in Q3FY23 and Protection APE 11% to Rs 340 crore, while Savings APE declined
15% to Rs 1378 crore in Q3FY23.
The Company’s
13th month persistency ratio improved to 86.1% for 9MFY2023 compared to 84.8%
for 9MFY2022. Similarly, the 49th month persistency ratio improved to 66.0% for
9MFY2023 compared to 63.0% for 9MFY2022.
The AUM grew
6% from Rs
237560 crore end December 2021 to Rs
251884 crore end December 2022. The
Company had a debt-equity mix of 54:46 end December 2022 and 97.1% of the fixed
income investments were in sovereign or AAA rated instruments.
The
Company’s net worth was Rs
10092 crore end December 2022. The
solvency ratio was 212.2% against the regulatory requirement of 150%.
Embedded
value
per share calculated stood at Rs 232.8 end December 2022.
N S Kannan, MD & CEO,
ICICI Prudential Life Insurance said, “We have maintained positive
momentum in business and profitability during the nine months ended FY2023, and
have registered a strong year-on-year growth of 23.2% in the Value of New Business
(VNB) which stood at Rs
17.10 billion for the the period ending
9M-FY2023.
With this
strong performance and continued focus on the 4P strategy, we are close to achieving
our aspiration of doubling the FY2019 VNB by FY2023.
This
consistent track record of healthy compounding of VNB, and near doubling of the
VNB margin are a result of our transformative diversification in products,
distribution partnerships and customer segments which began in FY2019. We are
now a much more protection and annuity-oriented Company with almost 50% of the
total new business received premium contributed by these two product segments
in 9M-FY2023. The new business sum assured has registered a growth of 34.9%
year-on-year to Rs
6.9 trillion, resulting in the Company’s
market share on new business sum assured expanding to 14.6%. Our customers are
at the core of everything we do, and during this period, our AUM crossed the
milestone of Rs 2.5 trillion,
signifying their trust reposed in the Company. Based on the foundation of
trust, a well-balanced product mix, diversified distribution architecture and
wider customer segments, we have created a resilient platform for sustainable
growth and are well postioned to capitalise on the opportunities ahead.”
Financial Performance 9MFY2023
The Company’s profit after
tax was Rs 575.8 crore for 9MFY2023, as compared to Rs 569.47 crore for 9MFY2022.
Value of New
Business (VNB) for 9MFY2023 was Rs 1710
crore, a growth of 23.2% over 9MFY2022. With an APE of Rs 5341 crore for 9MFY2023,
New business
premium was Rs
11287 crore for 9MFY2023, a growth of
10.1% as compared to Rs 10248
crore for 9MFY2022. APE was Rs 5341
crore for 9MFY2023, a growth of 4.2% as compared to Rs 5125 crore for 9MFY2022.
Annuity APE
grew from Rs
216 crore in 9MFY2022 to Rs 337 crore in 9MFY2023, registering a growth
of 56.0% year-on-year. Protection APE grew from Rs 856 crore in 9MFY2022 to Rs 1050 crore in 9MFY2023, registering a growth
of 22.7% year-on-year. The protection mix improved from 16.7% of APE in 9MFY2022
to 19.7% of APE in 9MFY2023.
Savings APE
(other than annuity business) was Rs 3954
crore in 9MFY2023 as compared to Rs 4052 crore in 9MFY2022.
New Business
Sum Assured was Rs
692193 crore for 9MFY2023, a growth of
34.9% as compared to Rs 513163
crore for 9MFY2022. The Company’s market share on new business sum assured
expanded to 14.6% during 9MFY2023 from 12.7% for 9MFY2022.
In 9MFY2023,
the cost to total weighted received premium (TWRP) ratio for the savings business
and the overall cost to TWRP ratio stood at 13.9% and 20.8% respectively. In
the current financial year, the Company has been investing in building for
sustainable future growth.
Net premium earned (gross
premium less reinsurance premium) increased by 3.9% from Rs 24962 crore in 9MFY2022
to Rs 25930 crore in 9MFY2023. Total investment income decreased from Rs 24217
crore in 9MFY2022 to Rs 12378 crore in 9MFY2023, primarily on account of
decrease in market value of the securities held and decrease in profit on sale
of investments.
Investment income under
unit-linked decreased from Rs 19505 crore in 9MFY2022 to Rs 7595 crore in 9MFY2023.
Investment income under unit-linked is directly offset by change in valuation
of policyholder liabilities. Investment income under other than unit-linked
increased from Rs 4712 crore in 9MFY2022 to Rs 4783 crore in 9MFY2023 primarily
on account of an increase in interest income offset in part by decrease in profit
on sale of investments.
Other income increased from Rs
82 crore in 9MFY2022 to Rs 109 crore 9MFY2023.
Total expenses (including
commission) increased by 15.4% from Rs 4072 crore in 9MFY2022 to Rs 4698 crore
in 9MFY2023.
Commission expense decreased
by 0.5% from Rs 1116 crore in 9MFY2022 to Rs 1110 crore in 9MFY2023. New
business commission (including single premium commission) decreased from Rs 783
crore in 9MFY2022 to Rs 752 crore in 9MFY2023. Renewal commission increased
from Rs 281 crore in 9MFY2022 to Rs 287 crore in 9MFY2023.
Operating expense increased
by 21.8% from Rs 2894 crore in 9MFY2022 to Rs 3526 crore in 9MFY2023. Operating
expenses comprised of unit fund expenses (including goods and service tax on
linked charges) amounting to Rs 497 crore (9MFY2022: Rs 518 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 27.5% from Rs 2376
crore in 9MFY2022 to Rs 3029 crore in 9MFY2023, primarily on account of
increase in expenses relating to advertisement and publicity, employee
remuneration and professional charges.
Claims and benefit payouts
(net of reinsurance) increased by 4.2% from Rs 21355 crore in 9MFY2022 to Rs 22243
crore in 9MFY2023, primarily on account of increase in surrenders/withdrawals
offset in part by decrease in death claims. The death claims, net of amount
ceded in reinsurance, decreased by 42.7% from Rs 2935 crore in 9MFY2022 to Rs 1681
crore in 9MFY2023 primarily on account of decline in COVID-19 related death
claims. The Company had COVID-19 related death claims (net of reinsurance) of Rs
35 crore in 9MFY2023 (Rs 982 crore in 9MFY2022).
Change in actuarial
liability, including funds for future appropriation, decreased from Rs 23192
crore in 9MFY2022 to Rs 10759 crore in 9MFY2023. Change in fund reserve, which
represents change in liability carried on account of units held by unit-linked policyholders,
decreased from Rs 13683 crore in 9MFY2022 to Rs (626) crore in 9MFY2023. 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 9555 crore in
9MFY2022 to Rs 11136 crore in 9MFY2023.
|
ICICI Prudential Life
Insurance: Results Standalone Policyholders Account
|
|
|
2212 (3)
|
2112 (3)
|
Var %
|
2212 (9)
|
2112 (9)
|
Var %
|
2203 (12)
|
2103 (12)
|
Var %
|
|
Premium earned (net)
|
9464.51
|
9073.97
|
4
|
25930.42
|
24962.35
|
4
|
36321.27
|
34973.37
|
4
|
|
Income from
Investments
|
7721.84
|
736.96
|
948
|
11869.89
|
23493.07
|
-49
|
24969.54
|
47437.58
|
-47
|
|
Other income
|
36.57
|
29.09
|
26
|
107.95
|
79.81
|
35
|
112.59
|
93.40
|
21
|
|
Contribution from the
Shareholders` account
|
312.21
|
25.32
|
1133
|
1070.03
|
1183.53
|
-10
|
2161.11
|
1574.78
|
37
|
|
Total Income
|
17535.13
|
9865.34
|
78
|
38978.29
|
49718.76
|
-22
|
63564.51
|
84079.13
|
-24
|
|
Commission
|
391.38
|
420.83
|
-7
|
1110.37
|
1116.47
|
-1
|
1672.91
|
1500.22
|
12
|
|
Op. expenses related
to Insurance business
|
1044.49
|
837.84
|
25
|
3016.40
|
2374.32
|
27
|
3672.95
|
2688.26
|
37
|
|
Others
|
191.01
|
179.84
|
6
|
518.05
|
515.76
|
0
|
719.53
|
678.42
|
6
|
|
Benefits paid (Net)
|
8709.13
|
7664.61
|
14
|
22243.50
|
21355.06
|
4
|
29358.84
|
22640.90
|
30
|
|
Change in valuation of
policy liabilities
|
6623.88
|
305.85
|
2066
|
10509.98
|
23237.39
|
-55
|
25783.76
|
54324.10
|
-53
|
|
Provision for taxation
|
50.50
|
47.44
|
6
|
137.16
|
73.48
|
87
|
166.15
|
141.85
|
17
|
|
Total Expense
|
17010.39
|
9456.41
|
80
|
37535.46
|
48672.48
|
-23
|
61374.14
|
81973.75
|
-25
|
|
PAT
|
524.74
|
408.93
|
28
|
1442.83
|
1046.28
|
38
|
2190.37
|
2105.38
|
4
|
|
Transfer to
Shareholders` account
|
411.85
|
362.65
|
14
|
1193.91
|
1092.12
|
9
|
2160.22
|
1984.86
|
9
|
|
ICICI Prudential Life
Insurance: Results Standalone Shareholders Account
|
|
|
2212 (3)
|
2112 (3)
|
Var %
|
2212 (9)
|
2112 (9)
|
Var %
|
2203 (12)
|
2103 (12)
|
Var %
|
|
Amounts transferred
from Policyholders` account
|
411.85
|
362.65
|
14
|
1193.91
|
1092.12
|
9
|
2160.22
|
1984.86
|
9
|
|
Income from
investments
|
239.26
|
118.50
|
102
|
617.93
|
847.28
|
-27
|
1013.62
|
768.96
|
32
|
|
Total Income
|
651.11
|
481.15
|
35
|
1811.84
|
1939.40
|
-7
|
3173.84
|
2753.82
|
15
|
|
Expenses (apart from
Insurance)
|
26.05
|
24.46
|
7
|
73.79
|
73.56
|
0
|
102.43
|
61.15
|
68
|
|
Contribution to
policyholders account
|
312.21
|
25.32
|
1133
|
1070.03
|
1183.53
|
-10
|
2161.11
|
1574.78
|
37
|
|
Others
|
87.93
|
120.75
|
-27
|
87.93
|
112.84
|
-
|
119.75
|
36.49
|
228
|
|
Total Expenses
|
426.19
|
170.53
|
150
|
1231.75
|
1369.93
|
-10
|
2383.29
|
1672.42
|
43
|
|
PBT
|
224.92
|
310.62
|
-28
|
580.09
|
569.47
|
2
|
790.55
|
1081.40
|
-27
|
|
Tax
|
4.29
|
0.00
|
-
|
4.29
|
0.00
|
-
|
36.42
|
121.25
|
-70
|
|
PAT
|
220.63
|
310.62
|
-29
|
575.80
|
569.47
|
1
|
754.13
|
960.15
|
-21
|
|
EPS (Rs)*
|
6.1
|
8.6
|
|
5.3
|
5.3
|
|
5.2
|
6.7
|
|
|
* on current equity of
Rs 1438.56 crore of face value of Rs 10 each, PL: Profit to Loss, LP: Loss to
Profit,
|
|
Figures in crore,
Source: Capitaline Corporate Database
|
|
|
|
|
Previous News |
ICICI Prudential Life Insurance Company
(
Results
-
Analysis
18-Oct-23
08:06
)
|
|
|
ICICI Prudential Life Insurance Company receives affirmation in credit rating for NCDs
(
Corporate News
-
29-Sep-23
18:31
)
|
|
|
ICICI Prudential Life Insurance Company
(
Results
-
Analysis
18-Jan-23
07:52
)
|
|
|
ICICI prudential life insurance pays Rs 1,867 crore for death claims in FY24
(
Insurance
-
07-May-24
15:59
)
|
|
|
ICICI Prudential Q4 PAT climbs 27% YoY to Rs 235 cr
(
Hot Pursuit
-
21-Apr-23
10:04
)
|
|
|
ICICI Prudential Life Insurance Company Ltd up for third consecutive session
(
Hot Pursuit
-
29-Aug-23
13:05
)
|
|
|
ICICI Prudential Life Insurance Company allots 11,330 equity shares under ESOS
(
Corporate News
-
17-Apr-24
16:51
)
|
|
|
Sensex down 141 pts; private banks slide; VIX rises 2.3%
(
Market Commentary
-
Mid-Session
16-Mar-23
12:33
)
|
|
|
ICICI Prudential Life Insurance Company allots 28,925 equity shares under ESOS
(
Corporate News
-
24-Nov-23
14:19
)
|
|
|
ICICI Prudential Life Insurance Company Ltd spurts 0.68%, up for five straight sessions
(
Hot Pursuit
-
18-Jan-23
13:00
)
|
|
|
ICICI Prudential Life Insurance Company Ltd gains for third straight session
(
Hot Pursuit
-
13-Apr-23
13:06
)
|
|
|
|
|
|
Other Stories |
|
|
|
|
|
|
|