ICICI Prudential Life Insurance Life Q- 3 results

· New business Annualised Premium Equivalent (APE*) increased by 27.6% to ` 44.58 billion in 9M-FY2017 from ` 34.94 billion in 9M-FY2016
· New business APE* increased by 46.5% to ` 18.45 billion in Q3-FY2017 from ` 12.59 billion in Q3-FY2016
· New Business margin (VNB* margin) increased to 9.4% for 9M-FY2017 from 8.0% for FY2016

The Board of Directors of ICICI Prudential Life Insurance Company Limited approved its audited financial results for the quarter ended December 31, 2016, following its meeting on Wednesday, January 24, 2017 in Mumbai. The disclosure of financial results submitted to exchanges is annexed to this release.

Commenting on the performance Mr.Sandeep Batra, Executive Director ICICI Prudential Life, said “This quarter was significant for the financial sector. Demonetization has not only enabled the country to head towards less cash but also facilitate a shift from physical to financial savings. We have always believed that the inherent advantages of digitisation like convenience,
reach and efficiency would be imperative for a sector like insurance. We leveraged our digital platform to completely stop accepting cash payments at our branches since August 2015.
Our strategy of focusing on increasing margin through higher protection business yielded an increase in VNB margin to 9.4% for nine months ended December 31, 2017 from 8% for fiscal 2016 on the back of 122.1% growth of protection mix. We would continue to focus on protection business as we believe that there still exists a significant need for protection in
India.”

New business growth and market share
· 27.6% year on year growth in Annual Premium Equivalent (APE); § Protection APE increased by 122.1% and Savings APE increased by 25.4% § 46.5% growth in APE for Q3-FY2017 as compared to Q3-FY2016
· Overall market share of 13.0% and private market share of 24.5% based on retail weighted received premium (RWRP) for 9M-FY2017 retaining leadership amongst private players.

Profitability
· Value of New Business (VNB) at ` 4.21 billion for 9M-FY2017 as compared to ` 4.12 billion for FY2016.
· VNB margin increased to 9.4% for 9M-FY2017 from 8.0% for FY2016 on account of increase in protection business.
· Profit after tax at ` 12.74 billion for 9M-FY2017 as compared to ` 12.47 billion for 9MFY2016.

Quality of business and efficiency
· 13th month persistency improved to 83.4% for 9M-FY2017 from 80.9% for 9M-FY2016.
· The cost to Total Weighted Received Premium (TWRP) ratio stood at 15.9% for 9M-FY2017 compared to 16.0% for 9M-FY2016.