January 27, 2021
VNB Margin at 26.0% for 9M-FY2021 New business sum assured growth of 22% y-o-y in Q3-FY2021 Private sector market leader in new business sum assured with 13.0% market share New business premium growth of 14.0% y-o-y in Q3-FY2021 AUM crosses ` 2 trillion
New business sum assured grew by 22.2% year-on-year in Q3-FY2021 along with expansion in new business premium by 14.0% year-on-year in the same period. The Company was further able to strengthen its position as the private market leader on new business sum assured, with a market share of 13.0% during 9M-FY2021, up from 11.8% for FY2020. New business Annualised Premium Equivalent (APE) for Q3-FY2021 was ` 16.66 billion, a sequential improvement of 14% over Q2-FY2021. The Value of New Business (VNB) for the quarter stood at ` 4.28 billion with an expansion in VNB margin to 25.7%, from 20.9% in the corresponding period last year. VNB for 9M-FY2021 stood at ` 10.30 billion with a margin of 26.0%, up from 21.0% for 9M-FY2020. The focus on maintaining Balance Sheet resilience through a robust risk management mechanism and investment policy has helped ensure zero Non Performing Assets (NPAs) since inception and across market cycles. The solvency ratio stood at 226% on December 31, 2020, well above the regulatory requirement of 150%. Assets under Management stood at ` 2,048.72 billion at December 31, 2020, a growth of 34% over March 31, 2020. This is an outcome of the growth in new business, strong persistency, lower surrenders and robust fund management.
Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “We had a strong VNB performance with the margin improving from 21.0% for 9M-FY2020 to 26.0% for 9M-FY2021. As we progressed through the pandemic, our focus has been to put in place the building blocks for future growth. Our resilient Balance Sheet provides a strong foundation with zero NPAs since inception, robust risk management strategies and a strong solvency ratio of 226%. Our product strategy is helping us capitalize on opportunities in the emerging environment without compromising on risk management. During the quarter, traditional long-term savings products grew by 36% year-on-year and annuity products registered a robust growth of 125% year-on-year. Our market leading protection performance has helped us increase the protection mix from 14.1% for 9M-FY2020 to 17.8% for 9M-FY2021. Our diversified product mix has the ability to deal with cycles and is better placed for growth. We continue to invest in distribution expansion through new partnerships, new agents and the emerging ecosystem, resulting in a diversified distribution network with increasing relevance of new channels. Our recent tie-ups with AU Small Finance Bank and RBL Bank will help improve our disribution footprint across the country. During the quarter we crossed a historic milestone of ` 2 lakh crore in Assets under Management, which is an outcome of the growth in new business, strong persistency, lower surrenders and robust fund management. It also reflects the strong customer franchise we have built over the last 20 years.“
