ICICI Prudential Life declares full year financial results for the period ended March 31, 2020

Mr. N S Kannan, MD & CEO, ICICI Prudential Life said, "As a nation, we continue to fight the COVID-19 pandemic. Through this period, we are proud that we have provided uninterrupted service to our customers through our extensive digital service capabilities. I would also like to thank our employees, who have been a key source of strength and have stayed focussed on serving our customers in these difficult times.

We had set our aspiration in April 2019 to double our FY2019 Value of New Business (VNB) within 4 years. I am happy to report that in FY2020, VNB grew by 21% from Rs. 13.28 billion to Rs. 16.05 billion for FY2020, which is well within the growth range required to meet that aspiration.

Our innovation journey continued during FY2020 with products such as Lakshya and Precious Life, as well as new-age distribution tieups with fin-tech companies and payment banks. On the regulatory front, within the sandbox framework, the IRDAI has approved seven proposals of life insurance companies. I am quite pleased to let you know that five of the seven proposals were ours. This is a further endorsement of our customer centric innovation initiatives."

VNB & growth drivers

The Value of New Business grew by 21% from Rs. 13.28 billion in FY2019 to Rs. 16.05 billion in FY2020. VNB margin increased from 17.0% in FY2019 to 21.7% in FY2020. The contribution of the each of the elements of the 4P strategy are enumerated below:

Premium

New business received premium grew at a healthy rate of 20% from Rs. 102.52 billion for FY2019 to Rs. 123.48 billion for FY2020. Annuity new business premium registered a growth of 52% from Rs. 6.85 billion for FY2019 to Rs. 10.43 billion for FY2020.

Protection

Protection APE registered a healthy growth of 55% from Rs. 7.22 billion in FY2019 to Rs. 11.16 billion in FY2020. The protection mix improved from 9.3% of APE in FY2019 to 15.1% of APE for FY2020.

Persistency

The 13th and 49th month persistency (excluding group and single premium policies) stood at 83.2% and 64.6% respectively at March 31, 2020. Assets under management stood at Rs. 1,529.68 billion at March 31, 2020.

Productivity

The Cost/Total Weighted Received Premium (TWRP) for the savings line of business improved from 11.5% for FY2019 to 10.4% in FY2020.

Embedded Value

The EV stood at Rs. 230.30 billion as on March 31, 2020 and the Return on Embedded Value was 15.2% for FY2020.

Shares of ICICI Prudential Life Insurance Company Ltd was last trading in BSE at Rs.336.5 as compared to the previous close of Rs. 361.2. The total number of shares traded during the day was 239704 in over 10114 trades.

The stock hit an intraday high of Rs. 356.55 and intraday low of 329.75. The net turnover during the day was Rs. 82266551.

Source : Equity Bulls

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