The company experienced an 8% year-on-year increase in its Value of New Business (VNB) during the quarter. The Annualized Premium Equivalent (APE) rose by 34.4% to ₹1,963 crore, compared to ₹1,461 crore in the same quarter last year. This growth was largely driven by a 135% rise in the annuity business, albeit from a smaller base, and a 35.9% increase in savings.
The insurer also saw improvements in its persistency ratios, with the 13-month persistency climbing to 89.7% from 86.4% and the 49-month persistency rising to 70% from 66.5%. However, the VNB margin fell to 24% from 30% due to changes in the product mix.
Advanced machine learning models have played a pivotal role in bolstering persistency across most cohorts. The 13th month persistency ratio improved by 330 basis points to 89.7% in Q1-FY2025. Similarly, the 49th month persistency ratio also improved by 420 basis points to 70.7% in Q1-FY2025.
A diligent and robust risk management framework has enabled the company to maintain an uninterrupted track record of zero non-performing assets since its inception. The solvency ratio was 187.9% as of June 30, 2024, against the regulatory requirement of 150%.
Commenting on the results, Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “I am happy to share that we have delivered strong RWRP growth of 46.8% year-on-year in Q1-FY2025, outperforming both the overall industry and private life insurers for the third consecutive quarter in a row. The topline growth was supported by an increase of 15.1% in the Number of Policies (NOP) sold during the same period. Our VNB grew by 7.8% year-on-year to ₹4.72 billion in the same period, reflecting the growing profitability of our business.
We welcome the Regulator’s efforts to increase insurance penetration by improving the customer’s value proposition for non-linked products. Even before the revised surrender value norms came into force, we had launched ICICI Pru GPP Flexi with Benefit Enhancer, the industry’s first annuity product which provides customers the option to receive 100% moneyback of premiums paid any time. We believe that such customer-centric changes will boost the industry’s long-term growth.
We continue to work on process innovation and simplification, which has enabled us to deliver best-in-class customer experience and improve our operational efficiency. Notably, 85% of our policies have been issued using digital KYC and 48% of our policies were issued on the same day for savings line of business in Q1-FY2025. Our 13th month persistency is at 89.7%, indicating the trust and satisfaction of our customers.
Note: We are also on WhatsApp, LinkedIn, and YouTube, to get the latest news updates, Join our Channels. WhatsApp– Click here, and for LinkedIn– Click Here.
