ICICI Prudential Life Insurance reported strong financial results for the quarter ended March 31, 2022 on Saturday, driven by robust growth (33%) in the value of new business (NBV). The company, in its quarterly earnings report, said its VNB margin – a measure of profitability – had risen to 28% from 25.1% a year ago, while absolute VNB stood at Rs 2,163 crores.
The company said this was due to robust growth of 25% in the amount of new business insured and a 20% increase in annualized premium equivalent (APE) for the same period. Its reported APE stood at Rs 2,608 crore, up 3.9% year-on-year from Rs 2,509 crore. According to the earnings report, in fiscal 2022, premiums for new annuity and protection business increased 29% and 35% year-on-year, respectively. Since both of these segments are significantly underutilized, they offer tremendous growth opportunity, the company said.
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The company’s New Business Sum Assured reached Rs 7.73 lakh crore for the 2022 financial year, making ICICI Prudential Life Insurance “the leader in the private sector”. A combination of factors such as innovative products coupled with a deep and extensive distribution network have helped the company maintain its position as the market leader in Sum Assured new business, the company added.
The company’s 13th-month persistence ratio improved to 85.7% in fiscal 2022 from 84.8% in fiscal 2021, which it says is indicative of the quality of business written. . Assets under management stood at Rs 2.41 lakh crore in the reporting quarter. “This is the result of the confidence customers place in the business, new business growth, strong persistence and robust fund management. The solvency ratio for fiscal year 2022 is is set at 204.5%, well above the regulatory requirement of 150%,” the company said. in his report.
“Despite the disruption 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 monthly sales ever for the company since its inception. This helped grow our VNB by 33% year-on-year. We are now ready to build on all of the good work that has gone into building a growing and sustainable customer-centric institution,” said NS Kannan, MD and CEO, ICICI Prudential Life Insurance.
First post: STI