ICICI Life Insurance (ICICIPRULI) Q4 10/11 earnings summary

Executive summary

• FY2011 marked a second consecutive year of profit, with focus on quality growth, profitability, cost control, persistency and customer service.

• Premium income grew 8.2% to ₹178.81bn; profit after tax increased to ₹8.08bn from ₹2.58bn.

• Management aims to sustain profitable growth, expand technology integration and strengthen customer reach while adapting to regulatory changes.

Financial highlights

• Total premium income reached ₹178.81bn, up 8.2%; new business premium rose 24.1% to ₹78.62bn, while renewal premium fell 1.7% to ₹100.18bn.

• Profit before tax was ₹8.33bn versus ₹2.81bn; profit after tax was ₹8.08bn versus ₹2.58bn.

• Net premium income (after reinsurance) was ₹178.17bn, up 8.1%; AUM rose 18.9% to ₹681.50bn.

• Investment income declined to ₹63.37bn from ₹176.11bn, principally reflecting the prior-year linked-fund unrealized gains; linked investment results offset linked-liability movements.

• Benefits paid increased to ₹105.91bn from ₹72.10bn, mainly as surrender outgo rose 49.0% to ₹101.84bn.

Outlook and guidance

• Priorities include sustaining profitable growth, improving persistency, controlling expenses and balancing top-line growth with profitability.

• Planned technology integration and online distribution are intended to expand reach, improve service and support future growth.

• Management expects long-term Indian life-insurance demand to benefit from rising incomes, savings, financial literacy and a growing working population.