ICICI Prudential Life Insurance Q1FY22 Results & Conference Call Highlights

Financial Highlights:

Key Parameters:

Conference Call Highlights:

Financial updates:

• Net premium income of ICICI prudential life insurance results gre+w by 19% YoY, led by a 40% and 89% growth in the regular and single premium business of ICICI prudential life insurance annuity. New business premium (NBP) of the ICICI prudential life annual report grew 71% YoY. However, renewal premium trends remain muted.
• The ICICI prudential life insurance analyst report shows that there is a  reported loss of Rs.1.9b on account of higher COVID-related provisions and claims settlement as per the ICICI prudential life share price.
• Value for new business (VNB) of ICICI prudential life insurance stock analysis reported growth of 78% YoY of Rs.3.6b, with a sharp improvement in ICICI prudential life review of the VNB margin to 29.4% v/s 25.1% in FY21, aided by a product mix change towards higher-margin segments (Protection/Non-Linked).
• ICICI prudential life insurance results show that the total APE grew 48% YoY led by a 66% of the ICICI prudential life insurance swot analysis and 164% growth in the Non-Linked Savings/Annuity business.

Claim Status and Provisions:

• The company settled Rs.11.2b in total claims on account of the pandemic in 1QFY22 which increased by 3.2x over FY21.
• It held total provisions of RS.4.98b towards future COVID-19 claims, including IBNR (Incurred but not reported) at the end of Jun’21. Thus, it made provisions of Rs.1.7b during 1QFY22.
• Roughly RS.9b of contingent provisions –COVID-19(RS.5b) + routine provisions (RS.3.8b) – are available for future claim intimations, including IBNR.

Business Update:

• Credit Life has returned to pre-COVID levels. The share of Group Protection has increased in the Protection business. Overall, Protection trends improved during 1QFY22, led by Group and Credit Life, while Individual Protection has declined.
• There is a strong opportunity to offer Group term plans to large corporates as vaccination of their employees has improved sharply.
• In the Group Protection business, the focus remains entirely on right pricing and not compensating margin to gain market share.
• The company is one of the largest Pension and Annuity providers.
• Business momentum in ULIP has recovered.
• The increase in cost ratios is in line with new business premium growth. In 1QFY21, discretionary spends were lower, with no increments to employees. In 1QFY22, advertising and employee expenses both increased.
• It continues to hold its stated guidance of doubling FY19 VNB over a four-year period (FY23).
• The company is focusing on creating new sourcing channels to further strengthen its distribution channel. During 1QFY22, it added 4.5k new agents to further strengthen its Agency channel.
• 24 new partnerships were added including web aggregators and ecommerce players.
• In the Direct channel, there was a higher proportion of ULIP sales, followed by Non-Linked Savings. On the other hand, there was a higher focus on selling Non Linked and Protection policies in the Partner distribution channel.

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