ICICI Life Insurance (ICICIPRULI) Q4 22/23 earnings summary

Executive summary

• FY2023 achieved the target of doubling FY2019 absolute VNB; VNB reached ₹27.65bn, with a 32% margin and a 20.1% four-year CAGR.

• Product and distribution diversification broadened the business mix; protection and annuity contributed 47.8% of new business received premium.

• Strong capital and service measures included 208.9% solvency, 98.7% overall claims settlement and 85.4% 13th-month persistency.

Financial highlights

• Standalone PAT rose to ₹8.11bn from ₹7.54bn; EPS was ₹5.64 basic and ₹5.63 diluted, versus ₹5.25 and ₹5.23.

• Gross premium increased 6.6% to ₹399.33bn; new business premium rose 12.5% to ₹169.22bn and APE grew 11.7% to ₹86.40bn.

• VNB increased 27.8% to ₹27.65bn; VNB margin improved to 32% from 28%. EV rose 12.7% to ₹356.34bn.

• Consolidated PAT was ₹8.13bn versus ₹7.59bn; consolidated total assets reached ₹2,501.57bn at March 31, 2023.

• Total expenses grew 20.7%; excluding advertising and publicity, the increase was 14.4%, broadly in line with APE growth.

Outlook and guidance

• FY2024 priorities: grow absolute VNB through the 4P strategy and continue investing in people, processes, technology and analytics, distribution and products.

• Medium-term protection growth is expected to exceed savings growth; technology, data science and analytics are expected to support productivity.

• Continued focus on under-served segments, distribution expansion, pension and annuity, persistency improvement and digital-led cost efficiency.