PremiumICICI Prudential Life Insurance reports outstanding results for 9M-FY2023 as the business maintained a solid YoY growth of 23.2% in the Value of New Business (VNB). The VNB, which represents profitability, grew from ₹13.88 billion in the same period last year to ₹17.10 billion in 9M-FY2023. Strong growth at VNB has been fueled by the 4P strategy's effective implementation, which includes growth in the premium and protection business as well as advancements in persistency and productivity.
The annualised premium equivalent (APE) for the Annuity and Protection business divisions grew by 56.0% and 22.7% YoY, respectively, during 9M-FY2023. Both of these sectors have enormous development potential since they are both notably underpenetrated. The new business sum insured climbed by 34.9% YoY to ₹6.9 trillion, increasing the company's market share from 12.7% to 14.6% for the nine months to the end of the fiscal year 2022.
In comparison to 9M-FY2022, the company's 13th-month persistency ratio increased to 86.1% during that period. Similar to this, the 49th-month persistency ratio for 9M-FY2023 increased to 66.0% from 63.0% for 9M-FY2022. Persistency is one of the strategic pillars of the 4P strategy framework, driven by its focus on customer-centricity, according to ICICI Prudential Life Insurance company. The Company's Assets Under Management (AUM) exceeded ₹2.5 trillion during this period. Offering client-focused solutions, raising the new business premium, achieving industry-leading persistency rates, providing top-notch customer service, and generating risk-adjusted returns have led to this result.
Protection APE grew by 22.7% to ₹10.50 billion in 9M-FY2023. From 16.7% of APE in 9M-FY2022 to 19.7% of APE in 9MFY2023, the protection mix climbed. As a consequence of the focus on premium growth and increasing the protection business, New Business Sum Assured (NBSA) expanded by 34.9% year-on-year to ₹6.9 trillion in 9M-FY2023, leading to a growth in NBSA market share from 12.7% in 9M-FY2022 to 14.6% in 9M-FY2023. Compared to 12.2% in 9M-FY2022, the cost/TWRP for the savings business was 13.9% in 9M-FY2023, and the overall cost ratio reached 20.8% in 9M-FY2023.
Mr. 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 ₹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."
He further added that “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 ₹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 ₹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."
The company had an AUM of ₹2,518.84 billion and a total sum assured of ₹27.55 trillion as of December 31, 2022.