ICICI Prudential Q4 Results: Premium Growth at Rs. 18,081 Cr, up 6.8%

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Synopsis:

ICICI Prudential Life Insurance Company’s growth trajectory has continued into their Q4FY2024. By outperforming both the overall industry and private life insurers, the company delivered Retail Weighted Received Premium (RWRP) growth of 11.5%. The Company’s Embedded Value also saw growth of 18.8% year-on-year from INR 35634 Crore on March 31, 2023, to INR 42337 Crore on March 31, 2024. The Company’s net worth came to around INR 11009 Crore on March 31, 2024, with a solvency ratio of 191.8% against the regulatory requirement of 150%.

Introduction

Promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited, ICICI Prudential Life Insurance Company (ICICI Prudential Life) began its operations in the fiscal year 2001. Keeping the Retail Weighted Received Premium (RWRP) of the company in mind, it has consistently remained on top when one considers the Indian life insurance sector. The company’s Assets Under Management (AUM) as of December 31, 2023 were INR 2,86,676 Crore. It was in FY2015 that ICICI Prudential Life transformed itself into the first private life insurer to attain assets under management of INR 1 trillion. The company also is the first insurance company in India to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Explore: Icici Pru Life Ins Co Ltd Share Price

5 Key Financial Highlights

ICICI Prudential Life Insurance Company’s Q4 FY2023-24 results have provided insight into the steady growth of the company. Here are the five key financial highlights of ICICI Prudential Life Insurance Company Q4 results:

  • Net Premium Earned in Q4 stands at INR 14,788 Crore from INR 9929 Crore in Q3, an increase of 8.3% 
  • Total investment income increased from INR 10,694 Crore in FY2023 to INR 47,931 Crore in FY2024
  • Profit After Tax (PAT) up 5.1% YoY at INR 852 Crore from INR 811 Crore
  • Total expenses (including commission and interest on sub-debt) increased by 19.4% from INR 7219 Crore in FY2023 to INR 8616 Crore in FY2024
  • Claims and benefit payouts increased by 29.0% from INR 31,004 Crore in FY2023 to INR 40,006 Crore in FY2024, due to higher surrenders/ withdrawals in the unit-linked portfolio. 

Additional Read: 150 Indian Companies to Release Q4 Results This Week

Key Business Updates:

  • The annuity & retail protection segments registered growth of 88.0% & 46.6% respectively in FY2024
  • The overall cost ratio i.e., Cost/Total Weighted Received Premium (TWRP) stands at 24.0% and the cost ratio for the savings line of business stands at 15.8% in FY2024. 
  • Retail Annualised Premium Equivalent (APE) grew by 12.0% in Q4-FY2024 & 7.3% in FY2024
  • Registered best in industry claim settlement ratio of 99.2% in FY2024, with an average turnaround time of 1.3 days for non-investigated claims.
  • A final dividend of ₹ 0.60 per share was also reported

Profitability Analysis:

In FY 24, ICICI Prudential Life Insurance Company’s retail New Business Sum Assured (NBSA) saw a growth of 38.3% year-on-year to INR 2.4 trillion in FY2024. The company also saw a total in-force sum assured* growth of 15.6% year-on-year to  34.1 trillion on March 31, 2024. Being the first life insurer in the country to offer an annuity product that provides customers with the option to receive a 100% refund of premiums paid, ICICI Prudential Life Insurance Company aims to make both the customer and distributor experience better at every point. 

*The sum assured represents the quantum of life cover opted for by customers and is an indicator of customers' confidence in the Company's claims settlement ability  

Additional Read: Quarterly Results

Major Operational Metrics - Consolidated Q4 (FY2023-24) Financial Results of ICICI Prudential Life Insurance Company (in ₹ Crore)




Metrics

FY24

FY24

YoY Growth %

Profit After Tax (PAT)

852

811

5.1%

Total Premium

43236

39933

8.3%

Total in-force sum assured 

3411

2951

15.6%

New Business Received Premium

180.81

169.22

6.8%

Retail Annualised Premium Equivalent (APE)

76.80

71.55

7.3%

Assets under Management (AUM)

2941.40

2511.91

17.1%

Source: SEBI Results 2024

The Future of ICICI Prudential Life Insurance Company 

ICICI Prudential Life Insurance Company has achieved stable growth in this quarter with a greater increase in total premium. With claims and benefit payouts having increased by 29.0% in FY2024, amongst other growth parameters, the company only seems to be holding steady in its upward climb. ICICI Prudential Life Insurance Company is also looking forward to leveraging technology to simplify products and processes to help better the customer experience. 

Results for the Fourth Quarter and Full Year Ended March 31, 2024

Additional Read: Annual Results

Conclusion

With humble beginnings in the year 2001, promoted by  ICICI Bank Limited and Prudential Corporation Holdings Limited, ICICI Prudential Life Insurance has gained momentum with every quarter. The company has been consistently placed amongst the top private sector life insurance companies in India on a Retail Weighted Received Premium (RWRP) basis every year. With the growth that has been achieved with every passing quarter and year, it is no doubt that their alignment with balancing growth, risk & prudence and profitability, holds firm.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Source: SEBI RESULTS MARCH 2024

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Frequently Asked Questions

What was the ICICI Prudential Life Insurance Net Premium Earned for Q4?

Answer Field

The net premium earned by ICICI Prudential Life Insurance company in Q4 stands at INR 14788 Crore from INR 9929 Crore in Q3, an increase of 8.3%

What is the future outlook for ICICI Prudential Life Insurance Company after the release of the Q4 results?

Answer Field

With claims and benefit payouts having increased by 29.0% in FY2024, amongst other growth parameters, the company only seems to be holding steady in its upward climb. The company also holds an industry-leading claim settlement ratio of 99.2% in FY2024, indicating its readiness and dedication towards balancing a positive customer experience while increasing its profits.

What are some of the main business updates for ICICI Prudential Life Insurance Company?

Answer Field

ICICI Prudential Life Insurance has seen tremendous growth in the past year, Here are some of the main business updates of the company:

  • The annuity & retail protection segments registered growth of 88.0% & 46.6% respectively in FY2024

  • Registered best in industry claim settlement ratio of 99.2% in FY2024, with an average turnaround time of 1.3 days for non-investigated claims.

  • A final dividend of ₹ 0.60 per share was also reported

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