ICICI Life Insurance (ICICIPRULI) Q4 07/08 earnings summary

Executive summary

• FY08 APE rose 49% to Rs 65.19bn and New Business Profit increased over 42% to Rs 12.54bn; retail market share reached 12.7%.

• Total premium income grew 71% to Rs 135.61bn, while the shareholders’ account recorded a net loss of Rs 13.95bn, reflecting investment in new business and distribution expansion.

• Strategy emphasized consumer-focused products, broader distribution, rural access, service technology and talent development to support future growth.

Financial highlights

• New business premium reached Rs 80.35bn, up 55.7% YoY; renewal premium was Rs 55.26bn, versus Rs 27.51bn in FY07.

• APE increased to Rs 65.19bn from Rs 43.81bn; New Business Profit rose to Rs 12.54bn from Rs 8.81bn.

• Shareholders’ net loss widened to Rs 13.95bn from Rs 6.49bn; basic and diluted EPS were both -Rs 10.28, versus -Rs 5.28 in FY07.

• Assets held were Rs 285.78bn, up 81% YoY; total policies issued reached 2.91m and the in-force policy base exceeded 7m.

Outlook and guidance

• Plans were to continue investing in products, employees, infrastructure and services, with current investments expected to support growth in coming years.

• Growth priorities included rural distribution, consumer convenience, health products and improved service access through web and mobile channels.