ICICI Prudential Life Insurance has posted a strong financial performance for Q1-FY2023 registering a 31.6% growth in its Value of New Business (VNB), a measure of the profitability of the Company. The VNB of the Company stood at ` 4.71 billion with a VNB margin of 31.0%. Annualized Premium Equivalent (APE) registered a strong growth of 24.7% year on year.
The Company’s New Business Sum Assured grew by 24.9% year-on-year to ` 2.21 trillion in Q1-FY2023. Significantly, the Company has achieved overall market leadership with the market share increasing from 14.7% in Q1-FY2022 to 15.8% in Q1-FY2023.
Persistency ratios have improved across all cohorts. The 13th-month ratio, which is representative of the quality of business, stood at 85.5% for Q1-FY2023.
Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “The VNB for the quarter was ` 4.71 billion, strong year-on-year growth of 31.6%. This was driven by a robust 24.7% growth in APE. Guided by the elements of our 4P strategy of Premium growth, Protection focus, Persistency improvement, and Productivity enhancement, we believe we are on track to achieve our aspiration of doubling the FY2019 VNB in this fiscal.
Significantly, our efforts to reach out to the underserved customer segments and expansion in the distribution footprint have enabled us to maintain our position as market leader on New Business Sum Assured, which grew by 25% year-on-year in Q1-FY2023, taking the Company’s market share to 15.8% in Q1-FY2023. With a solvency ratio of 203.6%, which is well above the regulatory requirement, we are well positioned to capitalize on this opportunity.
With a moderating trend in COVID-19-related claims, we expect the country to be at the tail end of the pandemic. The pandemic was a trying time for all and it also nudged us closer to our very purpose of existence – providing financial security to our customers and their families. I can proudly say that we rose to the occasion and stood by our customers in their hour of need.
