ICICI Prudential Life Insurance Company has announced that it has achieved a significant milestone of crossing Rs 3 lakh crore in Assets under Management (AUM). The company’s AUM as of July 31, 2024, was Rs 3.14 lakh crore. The company reported that as of June 2024, it had extended life insurance coverage to 9.84 crore individuals across all its business segments, marking a substantial 59% increase from the 6.19 crore individuals covered in June 2022. Additionally, the total sum assured in-force amounted to Rs 35.10 lakh crore as of June 30, 2024.
The company said claims are crucial for its reputation and are treated with the highest level of care and efficiency. This dedication is evident in the Company's exceptional claim settlement ratio of 99.17% for the financial year 2024, along with an impressive average turnaround time of only 1.27 days for non-investigated retail death claims.
“We are delighted to have crossed the milestone of achieving Rs 3 lakh crore in assets under management. Notably, our approach of the right product to the right customer at the right price and through the right channel has resulted in a robust increase of 59% in the number of lives covered, at an overall level, from 6.19 crore in June 2022 to 9.84 crore lives in June 2024. We believe these achievements reflect the trust placed in us by our customers," said Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance.
Bagchi said life insurance plays a crucial role in fulfilling the primary needs of society, such as providing financial security, facilitating wealth creation, and ensuring retirement income. ICICI Prudential products and processes are strategically designed to meet these needs efficiently.
He added: "Customers depend on us to provide financial security to themselves and their families. We therefore act as trustees and custodians of our customers' savings and have institutionalised a stringent investment philosophy and risk management framework which has ensured zero Non-Performing Assets since inception and across market cycles. By incorporating advanced technology solutions, we have successfully streamlined the life insurance process, developed innovative products, and enhanced the overall customer experience.”
ICICI Prudential Life Q1 results
Last month, ICICI Prudential Life reported an 8.7% year-on-year (Y-o-Y) increase in net profit to Rs 225.4 crore in the April-June quarter of FY25 (Q1FY25) owing to a rise in expenses. The expenses of the company rose by 32.8 per cent to Rs 198.53 crore in the quarter under review as compared to Rs 149.47 crore in Q1 FY24.
However, the company reported a contraction in the measure of profitability—VNB margin to 24 per cent in Q1FY25 compared to 30 per cent in the corresponding period last year.
Meanwhile, the company’s new business premiums grew by 23.5 per cent Y-o-Y to Rs 3,769 crore, against Rs 3,051 crore in the year-ago period. Its annualised premium equivalent (APE) was up 34.4 per cent Y-o-Y to Rs 1,963 crore during this period. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums.
In Q1FY25, the solvency ratio of ICICI Prudential Life stood at 187.9 per cent against 203.4 per cent in the year-ago period. The persistency ratio of the insurer remained healthy with the 13th-month persistency ratio at 86.4 per cent while the 61st-month ratio stood at 67.3 per cent in the quarter under review.