ICICI Prudential Life records 28% premium growth for 9MFY2009
Witnesses a strong growth of 75% in renewal premium
ICICI Prudential Life Insurance, India’s leading private life insurer, garnered a total premium (new business + renewal) of Rs 9,918 crores for the nine month period ended December 31, 2008 (9MFY2009) as against Rs 7,758 crores during the corresponding period last year, registering a growth of 28%. The company’s renewal premium showing a strong growth of 75% stood at Rs 5,427 crores for 9MFY2009, reflecting the long term sustainability of the business. The strong growth in renewal premium signifies the retail investors’ trust, as they continue to save for their long-term goal based needs through the company’s products, even during the recent volatile market scenario.
ICICI Prudential Life’s Annualized Premium Equivalent (APE) for the nine month period ended December 31, 2008 stood at Rs 3,762 crores, showing a marginal decline of 3% over the corresponding period last year. This performance needs to be viewed in the context of an overall decline in retail weighted premium of the industry by 4% during the April to November 2008 period. During this period, ICICI Prudential Life grew ahead of the market and retained its position as the leading private life insurer in the country with retail weighted market share of 12.4% of the total market1. The New Business Profit (NBP) stood at Rs 712 crores for 9MFY2009, resulting in an NBP margin of 18.9%.
The company’s assets under management (AUM) stood at Rs 28,445 crores as on December 31, 2008. The company’s funds are being managed by a strong in-house investment management team since inception. This, coupled with its investment philosophy of safety, stability & long-term returns to policyholders, has resulted in the company’s funds consistently outperforming their benchmark indices, since inception as well as over the past one year.
In the context of the unprecedented developments relating to Satyam Computer Services Limited (Satyam) on January 7, 2009, ICICI Prudential Life had clarified that it held 2.87% of Satyam’s share capital as of that date. These investments are marked to market on a regular basis and were insignificant at just 0.3% of the company’s assets at the above date. As a long term fund manager, ICICI Prudential Life ensures that there is adequate diversification in the portfolio with negligible concentration risk at any point of time. The consistent out-performance of the funds managed by the company both on a long and short term basis, despite the recent steep fall in the market price of the shares of Satyam demonstrates the effectiveness of its diversification strategy.
Commenting on company’s performance, Ms Shikha Sharma, Managing Director and CEO, ICICI Prudential Life Insurance said ”Through our extensive distribution network we have increased our proximity to our consumers, including those in rural India. Further, our products and service offerings along with the strong brand that we have built over the last eight years have helped us to become the most trusted private life insurer, in the country. I believe the strong renewals witnessed by us so far are a true reflection of consumers’ trust in us over the years.”
Key highlights
Corporate
- Sustained private market leadership: 8 years in a row
- One of the most capitalized companies in the life insurance industry. Total capital infusion stands at Rs. 4,780 crores with ICICI Bank and Prudential plc holding 74% and 26% stake respectively.
Awards & Recognition
- First Indian life insurance company to receive the ‘Life Insurance Company of the Year’ award at the Asia Insurance Industry Awards 2008. The company was awarded for its constructive contribution to efficiency and effectiveness in the financing of insurable risk in Asia.
- Received the coveted 'ICAI Award for Excellence in Financial Reporting' by the Institute of Chartered Accountants of India (ICAI). The award is a recognition of the quality of accounting practices and financial disclosures adopted by ICICI Prudential Life.
- Ranked as the Most Trusted Brand amongst private life insurers in The Economic Times-Most Trusted Brand Survey 2008.
Products & Services
- Strengthened its funds portfolio with the launch of Return Guarantee Fund (RGF), which provides guarantee on the current premium investment, to provide security in volatile markets.
- Launched LifeStage Assure, a triple advantage wealth creation product. The product is designed to provide upto 450% of first year premium guarantee on maturity, to enable consumers to invest in equities without any risk of downside.
- Strengthened its health insurance portfolio by launching Health Saver, to enable consumers meet their current healthcare expenses and also invest for future healthcare expenses. Health Saver is also the only health savings product that offers tax benefits under section 80D on the entire premium paid. MediAssure, a comprehensive reimbursement product in the health insurance category was also launched.
- Launched Sarv Jana Suraksha, the micro-insurance product that provides life cover to customers for a minimal premium of Rs. 50/- p a.
- Increased customer touch points through tie-ups such as Suvidha Info serve to accept insurance premium at over 3000 outlets across India, and premium payment service through IVR.
About ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc. It was one of the first players to commence operations when the insurance industry was opened to the private sector in 2000. For the nine month period ended December 31, 2008, the company garnered Rs. 9,918 crores of total premiums and has underwritten over 8 million policies since inception. The company has a network of 2,099 offices and 272,920 advisors. For the past eight years, ICICI Prudential has maintained its leading position amongst life insurers in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. To know more about the company, please visit www.iciciprulife.com.