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

Executive summary

• Achieved strong Q1 FY2025 growth with APE up 34.4% to ₹19.63 billion, VNB up 7.8% to ₹4.72 billion, and VNB margin at 24.0%, outperforming industry for the third consecutive quarter.

• PAT rose 8.7% year-over-year to ₹2.25 billion; assets under management surpassed ₹3 trillion, covering 98.4 million lives.

• Industry-leading claim settlement ratio of 99.2% for FY2024 and zero NPA since inception.

• Persistency ratios improved, with 13th month at 89.7% and 49th month at 70.7%.

• Digitalisation and data analytics drove operational efficiency, with 85% of policies issued via digital KYC and 96.2% of service interactions through digital modes.

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.

• Profit after tax rose to ₹2.25 billion; commission expenses surged 147% year-over-year to ₹9.46 billion due to regulatory changes.

• 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.

• Operating expenses declined 4.9% to ₹12.05 billion; claims paid rose 19.8% to ₹95.23 billion.

Outlook and guidance

• Focus on sustainable VNB growth, balancing business growth, profitability, risk, and prudence, with continued investment in digitalisation and ESG integration.

• Management aims to deliver alpha over the market, reassess growth and margins quarterly, and leverage product leadership and digital innovation.

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

• Targeting further improvement in persistency and productivity, leveraging technology and partner ecosystem.