ICICI Prudential Life Q4FY22 Results Update
On 16th April 2022, ICICI Prudential Life Insurance announced its quarterly results for the last quarter of FY2022.
- Value of New Business (VNB) for FY2022 was Rs.21.63 billion, a growth of 33.4% over FY2021. With an APE of Rs.77.33 billion for FY2022, the VNB margin was 28.0% for FY2022 as compared to 25.1% for FY2021.
- The Company’s profit after tax was Rs.1.85 billion for Q4-FY2022, a growth of 189.5% as compared to Rs.0.64 billion for Q4-FY2021. The Company’s profit after tax was Rs.7.54 billion for the year ended March 31, 2022, as compared to Rs.9.60 billion for the year ended March 31, 2021.
- The Embedded Value on March 31, 2022, was Rs.316.25 billion compared to Rs.291.06 billion on March 31, 2021.
New business growth:
- APE was Rs.77.33 billion for FY2022, a growth of 19.7% as compared to Rs.64.62 billion for FY2021. APE was Rs.26.08 billion for Q4-FY2022, a growth of 3.9% as compared to Rs.25.08 billion for Q4- FY2021.
- The new business premium was Rs.150.36 billion for FY2022, a growth of 15.4% as compared to Rs.130.32 billion for FY2021.
- The Company offers a range of products across protection and savings solutions to meet the specific needs of customers. During FY2022, retail traditional savings APE grew by 20.5% from Rs.20.08 billion in FY2021 to Rs.24.20 billion in FY2022. Protection APE grew by 25.5% year on year to Rs.13.13 billion and the protection mix stood at 17.0% in FY2022.
- As a result, the new business sum assured was Rs.2,599.83 billion for Q4-FY2022, a growth of 26.7% as compared to Rs.2,051.84 billion for Q4-FY2021. The new business sum assured was Rs.7,731.46 billion for FY2022, a growth of 25.4% as compared to Rs.6,166.84 billion for FY2021. Based on the new business sum assured, the Company continued to maintain leadership within the private life insurance sector.
- The Company has a strong focus on improving the quality of business and customer retention which is reflected in the 13th and 49th-month persistency ratios. Our 13th-month persistency ratio was stable at 85.7% on March 31, 2022, as compared to 84.8% on March 31, 2021. Our 49th-month persistency ratio improved to 63.7% for 11M-FY2022 as compared to 63.0% for 11M-FY2021.
- The cost to total weighted received premium (TWRP) ratio for the savings business stood higher at 12.8% in FY2022 as compared to 9.6% in FY2021. The overall cost to TWRP stood at 18.6% in FY2022. The growth in expenses ahead of APE growth was due to higher discretionary expenses in light of the easing of the pandemic as well as investment in capacity for future growth.
Assets Under Management:
- The total assets under management of the Company were Rs.2,404.92 billion on March 31, 2022, a growth of 12.3% over Rs.2,142.18 billion on March 31, 2021.
- The Company had a debt-equity mix of 53:47 on March 31, 2022. 97.8% of the debt investments were in AAA-rated securities and government bonds.
Net worth and Capital Positioning:
- The Company’s net worth was Rs.91.63 billion on March 31, 2022. The solvency ratio was 204.5% on March 31, 2022, against the regulatory requirement of 150%.
Financial Performance Update:
- Profit after tax decreased from Rs.9.60 billion in FY2021 to Rs.7.54 billion in FY2022.
- Net premium earned (gross premium less reinsurance premium) increased by 3.85% from Rs.349.73 billion in FY2021 to Rs.363.21 billion in FY2022.
- Total investment income of Rs.258.30 billion in FY2022 comprised an income of Rs.197.82 billion (Investment income FY2021: Rs.421.53 billion) under the unit-linked portfolio and an investment income of Rs.60.48 billion (FY2021: Rs.60.04 billion) under the non-unit funds.
- Other income increased from Rs.0.94 billion in FY2021 to Rs.1.15 billion in FY2022.
- Total expenses (including commission) increased by 24.8% from Rs.49.16 billion in FY2021 to Rs.61.37 billion in FY2022.
- Claims and benefits payouts increased by 29.7% from Rs.226.41 billion in FY2021 to `Rs.293.59 billion in FY2022 primarily on account of an increase in surrenders/withdrawals and death claims.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, "Despite the disruptions caused by the third wave of Covid-19, which impacted productivity in January and February, we were able to demonstrate resilience in our operations. In March, we posted the best-ever monthly sales by the company in any year since inception. This helped grow our VNB by 33 percent year-on-year to Rs 2,163 crore for FY2022 with a robust VNB margin of 28 percent."
The strong performance was driven in equal measure by over 100 valuable partnerships forged during the year. In the agency channel, it added almost 25,000 agents throughout the year.
This enabled ICICI Prudential to support its strategy of deepening and widening distribution.
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DisclaimerInvestment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
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