ICICI Prudential Life Insurance Company (ICICIPRULI) Q1 24/25 earnings summary

Executive summary

• Achieved strong Q1 FY2025 growth: APE up 34.4% to ₹19.63 billion, VNB up 7.8% to ₹4.72 billion, and PAT up 8.7% to ₹2.25 billion; RWRP rose 46.8%, outpacing industry for the third consecutive quarter.

• Industry-leading claim settlement ratio of 99.2% for FY2024; 13th month persistency at 89.7%; number of policies increased by 15.1%.

• Proprietary channels (agency and direct) drove 54% AP growth year-on-year, now contributing ~53% of retail AP mix.

• Assets under management surpassed ₹3 trillion, covering 98.4 million lives for ₹35.1 trillion sum assured as of June 30, 2024.

• Continued focus on customer centricity, digitalisation, and risk-calibrated growth, supported by a diversified product and distribution mix.

Financial highlights

• Total premium income for Q1 FY2025 was ₹82.84 billion, up 12.3% year-over-year; net premium earned increased 12.2% to ₹78.75 billion.

• VNB margin for Q1 FY2025 was 24.0%; retail AP grew 42.2% to ₹16.66 billion; agency AP up 61.6%, direct AP up 40.6%, bancassurance AP up 33.6%.

• Cost-to-TWRP ratio at 32.6% overall, 19.2% for savings line of business.

• Solvency ratio strong at 187.9%, well above the 150% regulatory minimum.

• Profit after tax for Q1 FY2025 was ₹2.25 billion, up from ₹2.07 billion in Q1 FY2024.

Outlook and guidance

• Focus remains on sustainable VNB growth, balancing business growth, profitability, risk, and prudence, with continued investment in technology and partnerships.

• Management aims to deliver alpha over the market, reassess growth and margins quarterly, and expand protection and annuity segments.

• Confident in ability to absorb regulatory changes and maintain growth trajectory.

• Industry opportunities highlighted in long-term savings, protection, retirement, and health, with significant protection and retirement gaps in India.