ICICI Prudential Life Insurance more than doubled FY19 VNB to Rs. 27.65 billion recorded VNB, VNB margin stood at 32%
ICICI Prudential Life Insurance has reported strong performance for the financial year ended March 31, 2023. Value of New Business (VNB), which reflects profitability, is expected to increase in FY2023 to Rs. 27.65 billion, showing a year-on-year growth of 27.8%. ICICI Prudential Life Insurance FY2023
VNB margins also increased from 28.0% in FY2022 to 32.0% in FY2023. The company has thus achieved its targeted objective of doubling the VNB of FY19 by FY2023.
Strong VNB growth over the four-year period has been driven by the successful implementation of the 4P strategy focusing on customer centricity which includes premium growth, protection business growth, continuous improvement efforts and productivity growth, while integrating ESG into business management.
During FY2023, Annualized Premium Equivalent (APE), a measure of new business, grew by 11.7% year-on-year to Rs. 86.40 billion. A combination of factors including wide distribution footprint along with expansion of product propositions to cater to an expanded customer base spread across various income segments has enabled the company to register strong growth in its premium across its distribution channels and products.
For FY 2023, Protection APE is expected to grow by 14.5% YoY to Rs. 15.04 billion. New business volume grew by 34.7% year-on-year to Rs. 10.4 trillion.
The company has reported significant improvement in sustainability across all segments compared to FY22. The 13th month persistence ratio improved by 90 basis points to 86.6% in 11 months of FY2023 and the 61st month persistence ratio improved by 1130 basis points to 65.7% in 11 months of FY2023.
Continuous investments in digital technology have enabled the company to be future-ready, achieve higher productivity, increase cost efficiency and provide superior customer service.
As on March 31, 2023, Assets under Management increased to Rs. 2,511.91 billion which shows customer confidence in the company. The solvency ratio for FY 2023 was 208.9%, well above the minimum regulatory requirement of 150%.
Mr N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “In April 2019, we had expressed our desire to double the VNB for FY 2019 in four years. I am very happy to say that
We have Rs. It has successfully achieved this with a VNB of 27.65 billion and an industry leading margin of 32.0%. This was delivered with a strong quality of VNB business as reflected in the sharp improvements in our persistence ratios across all groups.
We have been able to register 26.5% year-on-year growth in APE in Q4FY23, driven by our strategy of pursuing diversified distribution and a well-diversified product mix. Our focus on protection and annuity products is reflected in the growth of these segments. These products now account for nearly half of the new business premiums received for FY23.
We believe we have built a resilient business with a well-diversified product and channel mix, industry-leading quality parameters and strong risk and capital metrics. With this, we are ready to take advantage of the insurance opportunity in the coming years.”