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ICICI Prudential Life Insurance Co Ltd (BOM:540133) Q3 2025 Earnings Call Highlights: Strong ...

In This Article:

  • RWRP Growth: 31.4% year-on-year for nine months 2025.

  • APE Growth: 27.2% to INR69.05 billion for nine months 2025.

  • Number of Policies: Increased by 14.4% year-on-year for nine months 2025.

  • Annuity APE Growth: 81.7% year-on-year for nine months 2025.

  • Retail Protection APE Growth: 24.2% year-on-year for nine months 2025.

  • 13-Month Persistency: 89.8%.

  • 49-Month Persistency: 69.2%.

  • Claim Settlement Ratio: 99.3% for nine months 2025.

  • VNB Growth: 8.5% year-on-year to INR15.75 billion for nine months 2025.

  • VNB Margin: 22.8% for nine months 2025.

  • PAT Growth: 43.6% year-on-year to INR3.26 billion for Q3 FY 2025; 18.3% to INR8.03 billion for nine months 2025.

  • Assets Under Management: INR3.1 trillion.

  • Solvency Ratio: 211.8% as of December 31, 2024.

Release Date: January 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • ICICI Prudential Life Insurance Co Ltd (BOM:540133) reported a strong RWRP growth of 31.4% year-on-year for the nine months ended December 31, 2024.

  • The company's APE grew by 27.2% to INR69.05 billion, outperforming the private industry growth.

  • The claim settlement ratio stood at an impressive 99.3% with an average turnaround time of 1.2 days for non-investigative individual claims.

  • ICICI Prudential Life Insurance Co Ltd (BOM:540133) maintained a strong solvency ratio of 211.8%, supported by a subordinated debt raise of INR14 billion.

  • The company launched innovative products such as the industry-first women's health plan, ICICI Pru Wish, and an increasing annuity variant of GPP Flexi, catering to evolving customer needs.

Negative Points

  • The company's VNB growth was relatively modest at 8.5% year-on-year, despite a significant increase in APE.

  • Non-linked savings business, excluding annuity, declined by 17.4% year-on-year, indicating a shift in customer preference.

  • The protection APE growth was only 6.9% year-on-year, with challenges noted in the Credit Life business due to issues in the MFI industry.

  • The cost to TWRP ratio increased, indicating higher expenses relative to total weighted received premium.

  • The company's margins were impacted by a shift in product mix towards unit-linked products, which typically have lower margins compared to non-par products.

Q & A Highlights

Q: There has been a sudden spike in the group fund numbers. Can you shed some light on the reasoning for this? A: Yes, we had a spike in group fund numbers this quarter. Group fund is typically lumpy in nature, and it's a good business. We do make money off it, and we're happy to pick it up. - Dhiren Salian, CFO