ICICI Prudential Life Insurance Q1 Results FY2024, Profit at Rs. 2.07 billion

On 18th July 2023, ICICI Prudential Life Insurance announced its quarterly results for the last quarter of FY2023.

ICICI Prudential Life Insurance Financial Highlights:

- Net premium earned (gross premium less reinsurance premium) increased by 2.0% from Rs. 68.84 billion in Q1FY23 to Rs. 70.20 billion in Q1FY24.
- Total investment income increased from a loss of Rs.84.96 billion in Q1FY23 to a gain of Rs. 163.27 billion in Q1FY24
- The Company's profit before tax increased from Rs.1.56 billion in Q1FY23 to Rs. 2.08 billion in Q1FY24, a YoY growth of 33.3%.
- Profit after tax has increased from Rs.1.56 billion in Q1FY23 to Rs. 2.07 billion in Q1FY24.
- Claims and benefits payouts (net of reinsurance) increased by 44.2% from Rs. 55.12 billion in Q1FY23 to Rs. 79.46 billion in Q1FY24, primarily on account of higher surrenders/withdrawals in the unit-linked portfolio

ICICI Prudential Life Insurance Business Highlights:

- Value of New Business (VNB) was Rs.4.38 billion for Q1FY24. The VNB margin for Q1FY24 was 30.0% with an APE of Rs.14.61 billion.
- For Q1FY24, the new business premium was Rs.30.51 billion. APE was at Rs.14.61 billion for Q1FY24.
- Protection APE increased from Rs.3.30 billion in Q1FY23 to Rs.3.44 billion in Q1FY24, increasing by 4.2% YoY. 
- Retail protection business APE saw a significant increase of 61.8% year-over-year from Q1FY2023 Rs. 0.68 billion to Q1FY2024 Rs. 1.10 billion. As a result, the new business sum assured increased from Rs.2,209.35 billion in Q1FY23 to Rs.2,403.04 billion in Q1FY24, growing by 8.8% annually. 
- Retail New Business Sum Assured increased from Rs.349.79 billion in Q1FY23 to Rs.487.12 billion in Q1FY24, growing by 39.3% YoY.
- Savings business cost to total weighted received premium (TWRP) ratio and overall cost to TWRP ratio in Q1FY24 were 18.8% and 27.7%, respectively.
- The company’s assets under management increased from Rs. 2,300.72 billion at June 30, 2022, to Rs.2,664.20 billion on June 30, 2023, a 15.8% increase.
- On June 30, 2023, the Company had a net worth of Rs.105.2 billion. In comparison to the regulatory minimum requirement of 150%, the solvency ratio was 203.4%.

Commenting on the results, Mr. Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “Our very purpose of existence is to provide financial security to our customers and their families. We believe we are trustees of the life savings entrusted to us by our customers to achieve their protection, retirement, health and long-term savings goals.
In Q1FY24, the VNB stood at Rs. 4.38 billion, with a margin of 30%, while PAT grew 33% YoY to Rs. 2.07 billion. With customer-centricity at the core, we will continue to focus on growing the absolute VNB, through the 4P strategy comprising Premium growth, Protection focus, Persistency improvement and Productivity enhancement.”