Total premium grew by 13.0% to Rs.55.18 billion in Q1-FY2019 from Rs. 48.85 in Q1-FY2018
N. S Kannan, MD & CEO, ICICI Prudential Life Insurance said “Our focus continues to be on growing absolute Value of New Business using the Four-P strategy of focusing on Premium growth, Protection, Persistency and Productivity. This has yielded the desired outcome and we have been able to grow VNB with uncompromising focus on quality. Life insurance serves the two fundamental needs of society; those of providing financial Protection to families and of enabling customers to build Savings over the long term. The under-penetration of life insurance in the country presents a great opportunity for customer centric insurers having a diversified distribution architecture like us.”
VNB and Growth Drivers
The Value of New Business grew by 34.1% to Rs. 2.44 billion in Q1-FY2019 from Rs. 1.82 billion in Q1-FY2018.
· Premium / Annualised Premium Equivalent (APE)
The Company’s market share stood at 11.3% amongst life insurance companies, on a Retail Weighted Received Premium (RWRP*) basis for Q1-FY2019. RWRP witnessed a healthy sequential momentum within Q1-FY2019, with the month of June 2018 registering a growth of 36.0% over the previous month. Total premium witnessed a growth of 13.0% to Rs. 55.18 billion in Q1-FY2019 from Rs. 48.85 billion in Q1-FY2018.
In Q1-FY2019, protection APE registered a growth of 48.1%. Protection APE stood at 8.2% of overall APE for Q1-FY2019 compared to 4.5% for Q1-FY2018.
The 13th month persistency was steady at 85.8% for Q1-FY2019. The 49th month persistency improved to 63.7% in Q1-FY2019 as compared to 59.2% in Q1-FY2018. Retail renewal premium registered a growth of 29.1% and stood at Rs. 36.25 billion for
Q1-FY2019 compared to Rs. 28.08 billion for Q1-FY2018.
The Cost/TWRP was 17.5% for Q1-FY2019 as compared to 14.2% in Q1-FY2018 on the back of increased investments in growing the protection business.