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ICICI Prudential Life Insurance Co Ltd (BOM:540133) Q4 2025 Earnings Call Highlights: Strong ...

In This Article:

  • APE (Annualized Premium Equivalent): INR104.07 billion, a 15% year-on-year growth.

  • Total Premium: INR489.51 billion, a 13.2% year-on-year increase.

  • Retail New Business Sum Assured: INR3,324.49 billion, a 37% year-on-year growth.

  • 13-Month Persistency: 89.1%.

  • 49th Month Persistency: 59.5%.

  • Claim Settlement Ratio: 99.3% for FY 2025.

  • Cost to Premium Ratio: Improved from 18.2% to 18.1% in FY 2025.

  • VNB (Value of New Business): INR23.70 billion, a 6.4% year-on-year growth.

  • VNB Margin: 22.8%.

  • PAT (Profit After Tax): INR11.8 billion, a 39.6% year-on-year increase.

  • Embedded Value: INR479.51 billion, a 13.3% year-on-year growth.

  • ROEV (Return on Embedded Value): 13.1% for FY 2025.

  • AUM (Assets Under Management): INR3,093.59 billion, a 5.2% year-on-year increase.

  • Non-linked Business Growth: 13.8% year-on-year in Q4 FY25.

  • Linked Business Growth: 28.5% year-on-year, contributing 48.3% to APE.

  • Annuity Business: 41.5% sequential growth in Q4 over Q3, but a 7.8% year-on-year decline in Q4 FY25.

  • Retail Protection Growth: 25.1% year-on-year in FY25.

  • Agency Business APE Growth: 14.3% year-on-year, contributing 28.9% to overall APE.

  • Direct Business APE Growth: 17% year-on-year, contributing 14.4% to overall APE.

  • Bancassurance Business APE Growth: 18.2% year-on-year, contributing 29.4% to APE mix.

  • Partnership Distribution Business: Declined by 3.2%, contributing 10.9% to APE mix.

  • Group Business Growth: 24.6%, contributing 16.4% to mix in FY25.

  • Solvency Ratio: 212.2% as of March 31, 2025.

Release Date: April 15, 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 15% year-on-year growth in Annual Premium Equivalent (APE) to INR104.07 billion for FY25.

  • The company achieved a strong Retail Weighted Received Premium (RWRP) growth of 15.2% year-on-year.

  • Retail new business sum assured increased by 37% year-on-year to INR3,324.49 billion.

  • The claim settlement ratio was impressive at 99.3% for FY25, with an average turnaround time of 1.2 days for non-investigated individual claims.

  • Profit After Tax (PAT) grew by 39.6% year-on-year to INR11.8 billion in FY25.

Negative Points

  • The Non-linked Savings business saw a decline of 5.6% year-on-year, contributing 21.2% to APE.

  • The Annuity business experienced a year-on-year decline of 7.8% in Q4 FY25 due to a high base effect from the previous year.

  • The MFI segment in the credit life business faced challenges, impacting growth in this area.

  • Group term business was affected by increased competition, impacting its performance.

  • Operating assumption changes, particularly in mortality, led to a negative impact on VNB margins and embedded value.