ICICI Prudential Life Insurance Company Limited — PPTs, 10-07-2025: Investor Presentation

1. Financial Highlights:

ICICI Prudential Life Insurance reported a total premium of ₹489.51 billion in FY2025, growing 13.2% year-on-year (Y-o-Y). Retail Weighted Received Premium (RWRP) stood at ₹83.07 billion (+15.2% Y-o-Y), while Annualized Premium Equivalent (APE) was ₹104.07 billion (+15.0% Y-o-Y). Value of New Business (VNB) increased 6.4% to ₹23.70 billion with a VNB margin of 22.8%. Profit after tax surged 39.6% to ₹11.89 billion. Assets under management (AUM) rose to ₹3,093.59 billion (+5.2%), and embedded value (EV) grew 13.3% to ₹479.51 billion. Persistency ratios remained healthy with 13-month persistency at 89.1%, and claim settlement ratio was strong at 99.3%. Cost efficiency improved with cost-to-premium ratios stable around 18.1%.

2. Strategic Initiatives & Growth Drivers:

The company focuses on sustainable VNB growth by balancing growth, profitability, and risk through its 3C Framework: Competency, Customer centricity, and Catalyst. It continues to invest in technology and analytics to enhance operational efficiency and customer experience, including AI/ML for underwriting, claims, and persistency management. Product innovation includes industry-first health plans for women and increasing annuity options with inflation protection. Distribution expansion targets proprietary channels, micro markets, and multi-partner ecosystems, supported by digital onboarding and frictionless processes.

3. Business Developments:

ICICI Prudential Life Insurance strengthened its distribution with over 60,000 new advisors and 200+ new partnerships in FY2025. It enhanced digital capabilities with AI-powered platforms for sales, onboarding, and claims processing. The company launched innovative products such as women-specific health plans and annuity products with premium breaks and increasing income options. It also raised ₹14 billion in subordinated debt to support growth and maintain a strong solvency ratio of 212.2%.

4. Market Position & Competitive Advantage:

The company maintains a leadership position with a diversified product mix (49% linked, 21% non-linked, 16% protection) and distribution mix (30% agency, 29% bancassurance). It leads in customer experience, ranking #1 in industry NPS for three consecutive years. High persistency, rapid policy issuance (~50% same-day savings policies), and superior claim settlement (average 1.2 days) differentiate it. Strong solvency, zero NPAs, and robust risk management underpin its financial resilience.

5. Investor Implications:

ICICI Prudential Life Insurance demonstrates positive growth potential driven by strong premium growth, product innovation, and digital transformation. Its balanced approach to risk and profitability, coupled with a resilient balance sheet and leadership in customer experience, supports sustainable value creation. Investors should monitor execution risks related to scaling distribution and maintaining persistency amid competitive pressures, but overall fundamentals indicate solid long-term prospects.