Mumbai , April 22, 2023: ICICI Prudential Life Insurance has posted a strong performance for the year ended March 31, 2023. The Value of New Business (VNB), representing profitability, grew to ₹
27.65 billion in FY2023, a year-on-year growth of 27.8%. The VNB margin also expanded from 28.0% in FY2022 to 32.0% in FY2023. The Company has thus achieved its stated objective of doubling the FY2019 VNB by FY2023.
The robust VNB growth across the four-year period has been driven by the successful implementation of the 4P strategy comprising Premium growth, Protection business growth, Persistency improvement and Productivity enhancement while keeping customer centricity at the core, and integrating ESG into business management.
During FY2023, Annualised Premium Equivalent (APE), a measure of new business, grew year-on-year by 11.7% to ₹86.40 billion. A combination of factors including an extensive distribution footprint coupled with the broadening of product propositions to cater to an expanded customer base spread across various income segments, have enabled the Company to register strong growth in its premium across distribution channels and products.
For FY2023, protection APE grew by 14.5% year-on-year to ₹ 15.04 billion. The new business sum assured grew by 34.7% year-on-year to ₹ 10.4 trillion.
The Company has reported significant improvement in persistency across all cohorts compared to FY2022. The 13th month persistency ratio improved by 90 basis points to 86.6% in 11M-FY2023 and the 61st month persistency improved by 1130 basis points to 65.7% in 11M-FY2023.
The continuous investments in digital technologies have enabled the Company to be future-ready, achieve higher productivity, usher in cost efficiencies, and deliver superior customer service.
Asset under Management grew to ₹ 2,511.91 billion at March 31, 2023, it signifies customer trust in the Company. The solvency ratio for FY2023 stood at 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 articulated our aspiration to double the FY2019 VNB in four years. It gives me immense pleasure to state that we have successfully delivered this with a VNB of ₹ 27.65 billion and industry leading margin of 32.0%. This VNB was delivered along with strong quality
of business as can be seen from the sharp improvements in our persistency ratios across all cohorts.
Our strategy of pursuing a diversified distribution and a well diversified product mix has enabled us to deliver 26.5% year-on-year growth in APE (APE) in Ǫ4-FY2023. Our focus on protection and annuity products is reflected in the growth in these segments. These products together now contribute nearly half of the new business received premium for FY2023.
We believe that we have built a resilient business with well-diversified product & channel mix, industry leading quality parameters, and strong risk & capital metrics. With this, we are well poised to take advantage of the insurance opportunity in the coming years.”
