ICICI Life Insurance (ICICIPRULI) Q4 19/20 earnings summary

Executive summary

• FY2020 VNB rose 20.9% to ₹16.05bn, with margin expanding to 21.7%; new business premium grew 20.4% to ₹123.48bn despite APE declining 5.4% to ₹73.81bn.

• COVID-19 and market volatility drove a challenging outlook, but digital operations continued through lockdown; solvency remained above the 150% regulatory minimum.

Financial highlights

• Consolidated PAT was ₹10.67bn vs ₹11.39bn in FY2019; consolidated EPS was ₹7.43 vs ₹7.93. Standalone PAT fell to ₹10.69bn from ₹11.41bn.

• Gross premium rose 8.1% to ₹334.31bn, driven mainly by retail renewal and group premiums; total group premium increased to ₹48.90bn from ₹25.65bn.

• Embedded Value increased 6.5% to ₹230.30bn; EVOP declined to ₹32.88bn from ₹38.01bn and ROEV to 15.2% from 20.2%.

• Investment income in linked business swung to a ₹159.75bn loss from ₹73.44bn income, primarily reflecting unrealised market losses; the BSE 100 fell 26.6% in FY2020.

Outlook and guidance

• Aspiration remains to double FY2019 VNB in 3–4 years; strategy focuses on premium growth, protection, persistency and productivity.

• Favourable demographics, urbanisation, rising income and household financial savings are expected to support premium growth; protection is expected to grow at a multiple of savings growth.

• Digital process redesign is expected to improve customer service and cost ratios; demand could recover as activity resumes, with protection gaining acceptance amid COVID-19 concerns.