Latest news with #ICICIPrudentialLifeInsurance
Time of India
16 hours ago
- Business
- Time of India
Cooling FD rates spark renewed interest in single premium insurance products
Insurance companies are likely to witness a resurgence in demand for single premium products as interest rates on bank fixed deposits begin to soften, making insurance-linked investment options more attractive to customers. 'There has been a drop in fixed deposit rates, and that has made single premium products a lot more attractive,' said Dhiren Salian, Chief Financial Officer of ICICI Prudential Life Insurance , during the company's post-earnings analyst call. 'The challenge for most of last year was that fixed deposit rates were relatively high, which dampened demand for single premium products—whether annuities or otherwise.' A single premium policy allows the policyholder to pay the entire premium amount upfront, at the inception of the policy term. This differs from traditional insurance plans, where premiums are paid periodically, monthly, quarterly, or annually over the life of the policy. With fixed deposit rates now trending downward, insurers expect investors to increasingly shift to single premium life insurance and annuity products , which not only offer long-term protection but also tax advantages and relatively stable returns. ICICI Prudential Life Insurance reported a 5% year-on-year decline in its Annualised Premium Equivalent (APE) in the June quarter. APE is a key sales metric for insurers that combines the full value of regular premiums with 10% of new single premiums, allowing for a standardized comparison across different types of insurance products. The decline in APE was primarily driven by a steep drop in annuity sales, which fell by more than 53% year-on-year. In contrast, protection plans—offering pure life cover—registered strong growth of over 24%, while non-linked savings products rose nearly 21%. Sales of Unit Linked Insurance Plans (ULIPs), which are market-linked products, declined by 13.6%. Despite the drop in ULIP sales, the company remains optimistic about a recovery in the second half of the fiscal year. 'ULIPs have been volatile over the last six months, though they recovered to a reasonable level,' said Amit Palta, Chief Product & Distribution Officer at ICICI Prudential Life Insurance. 'What we have observed in the past is that when markets bounce back, affluent customers don't immediately return to unit-linked products. However, given the strong fundamentals of the market and India's young demographic profile, we believe the current volatility around ULIPs is temporary. These products will become meaningful again, and we expect demand to return.' The insurer is banking on a combination of market recovery and product diversification to drive growth in the coming quarters. The protection and non-linked segments, in particular, are expected to continue contributing meaningfully, offering stability amid fluctuating market conditions impacting ULIP sales.
Business Standard
17 hours ago
- Business
- Business Standard
ICICI Prudential rises as Q1 PAT gains 34% YoY to Rs 302 crore
ICICI Prudential Life Insurance Company rose 1.24% to Rs 679.45 after the company reported a 34.02% surge in standalone net profit to Rs 302.08 crore in Q1 FY26 as against Rs 225.40 crore posted in Q1 FY25. However, total income declined marginally 0.54% YoY to Rs 25,320.15 crore in the quarter ended 30 June 2025. The net premium income for Q1 FY26 rose by 7.98% year-on-year to Rs 8,503.19 crore. The first-year gross premium income fell by 11.24% YoY to Rs 1,445.42 crore. Meanwhile, renewal premium income jumped 9.45% YoY to Rs 4,941.65 crore, and single premium income saw a rise of 19.94% to Rs 2,566.97 crore. Net commission stood at Rs 984.92 crore during the quarter, registering a growth of 4.16% YoY. The value of new business (VNB), which represents the present value of future profits, stood at Rs 457 crore with a VNB margin of 24.5% for Q1 FY26. The total Annualised Premium Equivalent (APE) stood at Rs 1,864 crore for Q1 FY26. The companys retail New Business Sum Assured grew by 31.5% year-on-year to Rs 77,750 crore in Q1 FY26. Annuity business grew at a four-year CAGR of 15% in Q1 FY26. Retail protection business APE registered a strong growth of 24.1% year-on-year from Rs 1.12 billion in Q1-FY2025 to Rs 1.39 billion for Q1-FY2026. New Business Sum Assured (NBSA) grew by 36.3% year-on-year from Rs 2,72,468 crore in Q1 FY25 to Rs 3,71,452 crore in Q1 FY26. The companys new business received a premium added 6.4% to Rs 4,012 crore, while total premium collections increased 8.1% to Rs 8,954 crore. The assets under management (AUM) rose 5.1% to Rs 3,24,489 crore in Q1 FY26 from Rs 3,08,875 crore in Q1 FY25. The cost-to-total premium ratio dropped to 21.2% from 24% a year earlier. Within the savings line of business, the metric improved to 14.1% from 16.8%. From a regulatory perspective, the solvency ratio strengthened to 212.3%, well above the IRDAI-mandated 150%. The companys net worth also rose to Rs 12,553 crore from Rs 11,291 crore last year. Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance, said, In line with our strategy to place our customers at the center of everything we do, simplifying our products and processes, strengthening our distribution network, aligning our cost structures with our product portfolio and proactively managing business risks, our Q1-FY2026 performance demonstrates the strength and resilience of our business model. Our profit after tax grew by 34.2% year-on-year to Rs 302 crore in Q1-FY2026 and our VNB stood at Rs 457 crore with a margin of 24.5%. We reported a total premium growth of 8.1% year-on-year in Q1-FY2026 on the back of our extensive distribution and comprehensive product suite. Protection continues to remain at the heart of our business strategy and we registered a strong growth of 24.1% year-on-year in our retail protection business. Furthermore, our total New Business Sum Assured grew by 36.3% year-on-year in the same period. Our customer-centric approach resulted in 54% of our policies being issued on the same day for the savings line of business. Our claim settlement ratio of 99.6%, with an average turnaround time of 1.1 days for non-investigated individual death claims, reinforces our commitment towards transparency and reliability. Notably, the results of our cost optimization initiatives have led to an improvement in our cost-to-premium for the savings line of business by 270 bps to 14.1% in Q1-FY2026. Risk management continues to be an integral part of our approach to business with a focus on right selling, sourcing and onboarding, reflected by our strong solvency ratio that stood at 212.3% in Q1-FY2026 and zero NPA since inception. Our 13th-month persistency ratio stood at 86% in Q1-FY2026, exemplifying the quality of our business. We will continue to work on our strengths, that is, customer centricity, product leadership, extensive distribution network and business excellence, aided by the building blocks of people, digitalisation and analytics to help us achieve our core objective of growing the absolute VNB. ICICI Prudential Life is promoted by ICICI Bank and Prudential Corporation Holdings, headquartered in the United Kingdom. The company offers an array of products in the protection and savings category that match the different life stage requirements of customers, enabling them to provide a financial safety net to their families as well as achieve their long-term financial goals.
Economic Times
17 hours ago
- Business
- Economic Times
ICICI Prudential Life Q1 Results: Profit jumps 34% YoY as premiums rise, costs fall
India's ICICI Prudential Life Insurance on Tuesday reported a 34% rise in first-quarter profit, helped by higher premiums from group policies and lower operating costs. ADVERTISEMENT The life insurer reported a profit after tax of 3.02 billion rupees ($35.2 million) for the quarter ended June 30, compared to 2.25 billion rupees a year before. Its net premium income grew 8% to 85.03 billion rupees, driven by a 20% jump in single premiums. Meanwhile, operating expenses decreased 10.1% aided by lower advertisement and sales related cost, the company said. Analysts said strong growth in group insurance plans during the April-June quarter boosted premium income for insurers. Group insurance policies cover a group of people under one contract and are generally utilised by firms for their employees. ADVERTISEMENT However, growth in market- or unit-linked insurance plans (ULIPs) slowed in the quarter hit by broader market volatility driven by uncertainty over the global impact of policy shifts under U.S. President Donald Trump. ULIPs, which have lower margins, accounted for 46.8% of ICICI Prudential Life's overall product mix, down from 51.4% a year earlier. ADVERTISEMENT Annualised premium equivalent sales, a key metric that gives annualised total value of all single premium and recurring premium policies, fell 5% to 18.64 billion rupees for the June quarter. Value of new business (VNB), or expected profit from new policies, fell 3.2% to 4.57 billion rupees for the quarter. ADVERTISEMENT The company's VNB margin rose slightly to 24.5% for the quarter, compared to 24% a year ago. This was supported by the company's reducing shares of its lower-margin, market or unit-linked insurance plans (ULIP). ADVERTISEMENT Peers HDFC Life Insurance and SBI Life Insurance are yet to report their quarterly results. ($1 = 85.7800 Indian rupees). (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
17 hours ago
- Business
- Mint
ICICI Pru Life Q1 results: Net profit rises 34% YoY to ₹302.08 crore
ICICI Prudential Life Insurance Company on Tuesday reported a net profit growth of 34% for the quarter ended June 30, 2025, at ₹ 302.08 crore, compared to ₹ 225.4 crore in the year-ago period. In its exchange filing, the company stated that the increase was attributed to reduced new business strain along with improved investment income from shareholder investments. The company's net premium income for the reported quarter grew by 8% YoY to ₹ 8,503 crore, versus ₹ 7,875 crore posted in the corresponding quarter of the previous financial year. 'ICICI Prudential Life reported a total premium growth of 8.1% year-on-year in Q1-FY2026 on the back of its extensive distribution and comprehensive product suite,' said the company in an exchange filing. The value of new business (VNB) for Q1-FY2026 was recorded at ₹ 457 crore, down 3.2% year-on-year. With an annual premium equivalent (APE) of ₹ 1,864 crore, the VNB margin was reported at 24.5%. 'In line with our strategy to place our customers at the centre of everything we do, simplifying our products and processes, strengthening our distribution network, aligning our cost structures with our product portfolio and proactively managing business risks, our Q1-FY2026 performance demonstrates the strength and resilience of our business model,' said Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance, in an exchange filing. Additionally, the cost-to-premium ratio enhanced from 24.0% in Q1-FY2025 to 21.2% in Q1-FY2026, while the cost-to-premium for the savings segment improved from 16.8% to 14.1%. The company is actively pursuing several cost optimization strategies to align the cost structure with the product offerings. As of June 30, 2025, the assets under management by ICICI Prudential Life Insurance amounted to ₹ 3.2 lakh crore. ICICI Pru Life share price today opened at ₹ 672.65 apiece on the BSE, the stock touched an intraday high of ₹ 693 per share, and an intraday low of ₹ 659.80 per share. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, ICICI Pru Life share price has witnessed volatile swings following its quarterly earnings announcement. However, the overall chart structure remains positive, with prices forming a higher top–higher bottom pattern. On the downside, strong support is seen around ₹ 640, aligning with the 200-day simple moving average (200DSMA), while immediate resistance is placed near ₹ 680, which coincides with the previous swing high. A buy-on-dips strategy is preferred for this counter, and a decisive breakout above ₹ 680 could potentially propel the stock towards ₹ 750.
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Business Standard
18 hours ago
- Business
- Business Standard
ICICI Prudential Life Q1FY26 results: Net profit rises 34% to ₹302 crore
ICICI Prudential Life Insurance on Tuesday reported a 34 per cent year-on-year (YoY) increase in net profit to Rs 302 crore in the April–June quarter of FY26 (Q1FY26), aided by growth in premium income and a decline in expenses. The company had reported a net profit of Rs 225.4 crore in Q1FY25. Net premium income grew nearly 8 per cent YoY to Rs 8,503 crore from Rs 7,874.66 crore in the same period last year. However, the Annualised Premium Equivalent (APE) declined 5 per cent YoY to Rs 1,864 crore. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums. Expenses dropped 4.72 per cent YoY to Rs 1,891.5 crore in the quarter under review, compared to Rs 1,985.3 crore in Q1FY25. The Value of New Business (VNB) slipped 3.18 per cent YoY to Rs 457 crore from Rs 472 crore. The VNB margin contracted to 24.5 per cent in Q1FY26, from 24 per cent in the corresponding period last year. Anup Bagchi, managing director and chief executive officer, ICICI Prudential Life Insurance, said, 'We reported a total premium growth of 8.1 per cent year-on-year (YoY) in Q1FY26 on the back of our extensive distribution and comprehensive product suite. Protection continues to remain at the heart of our business strategy, and we registered a strong growth of 24.1 per cent year-on-year (YoY) in our retail protection business. Furthermore, our total new business sum assured grew by 36.3 per cent year-on-year in the same period.' 'We will continue to work on our strengths — that is, customer centricity, product leadership, extensive distribution network and business excellence — aided by the building blocks of people, digitalisation and analytics to help us achieve our core objective of growing the absolute VNB,' Bagchi added. In Q1FY26, the solvency ratio of ICICI Prudential Life stood at 212 per cent, against 187.9 per cent in the year-ago period. The persistency ratio remained healthy, with the 13th month persistency ratio at 80.8 per cent, compared to 85.7 per cent; while the 61st month ratio stood at 63.4 per cent, as opposed to 65.8 per cent in the quarter under review.
