ICICI Prudential Life Insurance Company Ltd has announced the financial results for the quarter and year ended March 31, 2019.
Value of New Business (VNB)
The VNB margin increased from 16.5% in FY2018 to 17.0% in FY2019 with the VNB for FY2019 at Rs. 13.28 billion.
Protection business share
In FY2019, the contribution of protection business in total new business received premium nearly doubled from 11.2% in FY2018 to 20.6% in FY2019. Protection APE grew by 61.9% and stood at Rs. 7.22 billion in FY2019.
The Board has approved a final dividend of Rs. 1.55 per equity for H2-FY2019. This is in addition to the interim dividend of Rs. 1.60 per share already declared and paid, bringing the aggregate of total dividend of Rs. 3.15 per share for FY2019.
Commenting on the results, Mr. Kannan, MD & CEO of ICICI Prudential Life said, "For fiscal 2019, the Value of New Business (VNB) margin increased from 16.5% to 17.0% and the absolute VNB for the year was Rs. 13.28 billion. The protection business now constitutes over 20% of our new business received premium. Given the protection gap in the country, we will continue to tap this opportunity with our customer centric and innovative products.
Mr. Kannan further added, "Every customer is important to us and is at the core of all our initiatives. Various customer centric initiatives implemented have been yielding positive results. We believe that our efforts in educating customers on the importance life insurance and remaining committed for the long term have been well received. Technology has been a catalyst for simplifying life insurance and providing a superior proposition to customers. The trust reposed in us by customers has enabled us to achieve a 15.6% growth in renewal premium and a 14.3% growth in total premium received. Further, we have been able to maintain and improve our business quality metrics."
The total premium registered a healthy growth of 14.3% from Rs. 270.69 billion for FY2018 to Rs. 309.30 billion for FY2019. In Q4 FY2019 the Annualised Premium Equivalent (APE) grew by 11% over same period last year. In FY2019, APE stood at Rs. 77.99 billion.
The 13th month persistency improved from 85.8% in FY2018 to 86.1% in FY2019. The 49th month persistency improved from 62.8% in FY2018 to 63.9% in FY2019. Retail renewal premium registered a growth of 15.6% and stood at Rs. 202.25 billion in FY2019 compared to Rs. 174.97 billion in FY2018.
The Cost/TWRP for savings business improved from 11.8% for FY2018 to 11.5% for FY2019.
Embedded Value (EV)
EV increased by 15.1% from Rs. 187.88 billion as on March 31, 2018 to Rs. 216.23 billion as on March 31, 2019. Return on Embedded Value was 20.2% for FY2019.
Shares of ICICI Prudential Life Insurance Company Ltd was last trading in BSE at Rs.363.15 as compared to the previous close of Rs. 368.45. The total number of shares traded during the day was 36874 in over 715 trades.
The stock hit an intraday high of Rs. 370.85 and intraday low of 360.45. The net turnover during the day was Rs. 13440285.