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VNB grew by 25.1% Y-o-Y in H1-FY2023 with VNB margin at 31.0% New Business Sum Assured grew 42.3% in H1-FY2023
Leading the private sector on New Business Sum Assured with market share of 15.7% in H1-FY2023
Annuity APE grew by 69%
ICICI Prudential Life Insurance posted strong growth of 25.1% in the Value of New Business (VNB) in H1-FY2023. VNB margin, a key measure of profitability, expanded to 31.0% and absolute VNB, stood at ` 10.92 billion in H1-FY2023.
Annualised Premium Equivalent (APE) grew sequentially by 32% for Ǫ2-FY2023 ending H1-FY2023 with an APE of ` 35.19 billion and New Business Premium of ` 73.59 billion. In H1-FY2023, the Protection business segment APE grew by 29.1% year-on-year, resulting in a protection mix of 20.2% of overall APE. APE from the Annuity business segment, which is a key focus area, grew by 68.8% year-on-year. Due to under- penetration, both these segments offer significant growth opportunities. The diversification of product and distribution mix has enabled the Company to manage the impact of external developments and respond to changing consumer preferences in an agile manner.
The Company’s New Business Sum Assured was ` 4.8 trillion in H1-FY2023, a growth of 42.3% year-on-year, enabling it to maintain its private market leadership position with a market share of 15.7%.
Persistency ratios have improved across all cohorts. The 13th month ratio, which is representative of the quality of business, stood at 85.9% for H1-FY2023, an improvement of 80 bps over H1-FY2022.
Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “We achieved a robust year-on-year growth of 25.1% in the Value of New Business (VNB), ending H1-FY2023 at ` 10.92 billion, emphasising our ability to navigate rapidly-evolving situations successfully. This was driven by growth in APE as well as margin expansion to industry leading levels of 31%. On the back of this strong VNB growth and with a favourable premium base for the coming months, we believe we are on track to achieve our objective of doubling our FY2019 VNB by the end of this fiscal year.
Our two focus areas of annuity and protection, which represent underserved needs of the country, have also done well in the period. The annuity segment has delivered an impressive performance of 69% year-on-year growth in H1-FY2023 and the protection segment contributed to 20% of APE in the period. With a solvency ratio of over 200%, which is well above the regulatory requirement, we are well positioned to capitalise on this opportunity.
The strong performance has also enabled us to maintain our position as the private sector market leader on New Business Sum Assured basis, which grew by 42.3% year- on-year, with a market share of 15.7%.”
