ICICI Life Insurance (ICICIPRULI) Q4 18/19 earnings summary

Executive summary

• FY2019 APE was ₹77.99bn; VNB rose 3.3% to ₹13.28bn, with a 17.0% margin, while embedded value increased 15.1% to ₹216.23bn.

• Profit after tax fell 29.6% to ₹11.41bn, largely reflecting higher new-business strain from growth in protection and annuity products, which management characterized as value-accretive.

• Strategic priorities remain premium growth, protection, persistency and productivity, with customer centricity and technology underpinning execution.

Financial highlights

• Total premium rose 14.3% YoY to ₹309.30bn; retail renewal premium grew 15.6% to ₹202.25bn, while new-business premium declined to ₹81.40bn from ₹84.02bn.

• Standalone PAT was ₹11.41bn versus ₹16.20bn; basic and diluted EPS were ₹7.95 and ₹7.94, respectively, versus ₹11.28 each in FY2018.

• Total expenses increased to ₹41.94bn from ₹34.75bn; total cost-to-TWRP rose to 15.0% from 13.7%.

• AUM increased 15.0% to ₹1,604.10bn; total sum assured reached ₹11,250.65bn.

Outlook and guidance

• Favorable demographics, rising incomes, urbanisation and household financialisation are expected to support premium growth; protection is expected to grow at a multiple of savings-business growth.

• Priorities include deeper penetration in underserved segments, broader distribution and partners, pension and annuity growth, online term insurance and loan-linked protection.

• Technology, digital servicing and process re-engineering are intended to improve customer experience and cost ratios; continued persistency gains remain a stated objective.