ICICI Life Insurance (ICICIPRULI) Q4 17/18 earnings summary

Executive summary

• FY2018 delivered 21.1% gross premium growth, 93.1% VNB growth and 16.1% embedded value growth; standalone PAT eased 3.7% as protection growth increased new-business strain.

• Strategy remained retail-led, using multichannel distribution, customer-focused savings and protection products, higher persistency and technology to grow VNB.

Financial highlights

• Gross premium rose 21.1% YoY to ₹270.69bn; retail renewal premium increased 23.1% to ₹174.97bn and APE grew 17.6% to ₹77.92bn.

• Standalone PAT was ₹16.20bn versus ₹16.82bn; consolidated PAT was ₹16.19bn. Total expenses reached ₹34.75bn from ₹31.60bn.

• VNB increased 93.1% to ₹12.86bn; embedded value rose 16.1% to ₹187.88bn and EV operating profit reached ₹36.80bn.

• AUM rose 13.5% to ₹1,395.32bn; assets increased 13.5% to ₹1,383.74bn.

Outlook and guidance

• Industry growth drivers include financialisation of household savings, digitisation, favourable demographics, higher affluence and low insurance penetration; GST-related disruption was viewed as temporary.

• Priorities: grow long-term savings and protection, expand online term and loan-linked cover, improve customer value, strengthen multichannel distribution, control costs and raise renewal premium while curbing surrenders.

• FY2019 GDP growth was forecast at 7.4% by the RBI; life insurance was expected to benefit from higher financial savings and formalisation.