Yahoo Finance

• RWRP Growth: 33.9% year-on-year in Q2 FY 2025 and 39.2% year-on-year in H1 2025.

• Private Sector Market Share: Increased by 1.1% to 10.3% in H1 2025.

• Overall APE Growth: 26.8% to INR44.67 billion in H1 2025.

• Number of Policies: Increased by 12.5% year-on-year in H1 2025.

• Claims Settlement Ratio: 99.3% in H1 2025.

• 13-Month Persistency: 89.8%.

• 49-Month Persistency: 69.9%.

• VNB Growth: 4.2% year-on-year to INR10.58 billion in H1 2025.

• VNB Margin: 23.7%.

• Embedded Value Growth: 19.4% to INR460.18 billion in H1 2025.

• Profit After Tax: INR4.77 billion, an increase of 5.8% year-on-year.

• Assets Under Management: INR3.2 trillion.

• Solvency Ratio: 188.6% as of September 30, 2024.

• Cost to Premium: 22.0% in H1 FY 2025.

• Cost to TWRP: 29.4% in H1 FY 2025, down from 32.6% in Q1.

• Warning! GuruFocus has detected 5 Warning Signs with BOM:540133.

Release Date: October 22, 2024

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 33.9% year-on-year in Q2 FY 2025 and 39.2% year-on-year in H1 2025, outperforming both the private and overall industry.

• The company gained 1.1% private sector market share on an RWRP basis, ending at 10.3% in H1 2025.

• The annuity and retail protection segments grew significantly by 99.5% and 17.2% year-on-year, respectively, while the linked business grew by 54.5% year-on-year in H1 2025.

• ICICI Prudential Life Insurance Co Ltd (BOM:540133) maintained a high claims settlement ratio of 99.3% in H1 2025, with an average turnaround time of 1.2 days for non-investigative individual claims.

• The company's embedded value grew by 19.4% year-on-year, reaching INR460.18 billion in H1 2025, indicating strong business growth and profitability.

Negative Points

• The non-linked savings contribution to overall APE declined from 26.6% last year H1 to 18.1% in H1 2025, indicating a shift in customer preference towards ULIP products.

• There has been a significant trend of price reduction in the group term business due to increased competition, impacting profitability.

• The company's renewal premium growth is lagging, growing at only about 3%, with continued outflows due to policy maturities and market conditions.

• The VNB margin saw a slight decline, primarily due to a shift in the product mix towards unit-linked products and a decline in nonparticipating business.

• The partnership distribution channel showed weak trends, attributed to prioritization of non-linked business and performance volatility among partners.