Icici Prudential Life Insurance Co. Ltd. · NSE:ICICIPRULI
Icici Prudential Life Insurance — 9M-FY2025 Earnings Presentation
71 slides from Icici Prudential Life Insurance's earnings presentation, Jan 21, 2025
Slide 1: Performance update: 9M-FY2025
Performance update: 9M-FY2025 January 21, 2025
Slide 2: Agenda
Agenda • Company strategy & performance • Opportunity & industry overview
Slide 3: Agenda
Agenda • Company strategy & performance • Opportunity & industry overview
Slide 4: 3C Framework
3C Framework Customer centricity Competency Catalyst Comprehensive product suite ESG integrated with Customer business management centricity People Tech Analytics Diversified Operational distribution efficiency Risk & Prudence Deliver sustainable VNB growth by balancing business growth, profitabilit
Slide 5: Performance snapshot: 9M-FY2025
Performance snapshot: 9M-FY2025 APE 13M Persistency1 VNB ₹ 69.05 bn CY: 89.8% ₹ 15.75 bn 27.2% Y-o-Y growth PY: 87.4% 8.5% Y-o-Y growth 22.8% VNB margin RWRP Claim settlement2 Profits after tax ₹ 55.36 bn Overall: 99.8% ₹ 8.03 bn 31.4% Y-o-Y growth Individual: 99.3% 18.3% Y-o-Y growth Cost/TWRP: Tot
Slide 6: 3C Framework
3C Framework Customer centricity Competency Catalyst Comprehensive product suite ESG integrated with Customer business management centricity People Tech Analytics Diversified Operational distribution efficiency Risk & Prudence Deliver sustainable VNB growth by balancing business growth, profitabilit
Slide 7: RWRP growth vs. industry
RWRP growth vs. industry RWRP Q4-FY2024 Q1-FY2025 Q2-FY2025 Q3-FY2025 (Y-o-Y growth) Overall industry 0.3% 19.7% 21.3% 4.8% Private industry 2.4% 23.8% 23.9% 12.7% ICICI Pru Life 11.5% 46.8% 33.9% 18.4% Outperformed private & overall industry for over last one year RWRP: Retail Weighted Received Pre
Slide 8: Product wise growth
Product wise growth Q3- Y-o-Y 9M- Y-o-Y Q3- 9M- Segments FY2025 Growth FY2025 Growth FY2025 FY2025 Savings 20.48 32.2% 57.38 32.2% 84.0% 83.1% Linked 12.00 41.8% 35.06 49.8% 49.2% 50.8% Non-linked 3.96 (24.1%) 12.05 (17.4%) 16.2% 17.5% APE (₹ billion) Annuity 1.83 50.0% 6.16 81.7% 7.5% 8.9% Mix Grou
Slide 9: Channel wise growth
Channel wise growth Q3- Y-o-Y 9M- Y-o-Y Q3- 9M- Channels FY2025 Growth FY2025 Growth FY2025 FY2025 Agency 7.28 26.0% 20.85 41.3% 29.9% 30.2% Direct 3.63 23.1% 10.57 31.6% 14.9% 15.3% APE (₹ billion) Bancassurance 6.10 19.1% 19.11 26.3% 25.0% 27.7% Mix Partnership distribution 2.25 7.1% 7.00 2.0% 9.2
Slide 10: Product & Distribution mix: 9M-FY2025
Product & Distribution mix: 9M-FY2025 Product mix Distribution mix 6% | Group funds 17% | Group 30% | Agency 9% | Annuity 51% | Linked 10% | 17% | Partnership Protection distribution 28% | 17% | Non-linked Bancassurance 15% | Direct Well diversified product & distribution mix Based on Annualised Pre
Slide 11: Segment in focus
Segment in focus Protection Annuity 9M- 9M- Y-o-Y 9M- 9M- Y-o-Y (₹ billion) (₹ billion) FY2024 FY2024 FY2025 Growth FY2025 Growth Protection APE1 10.92 11.67 6.9% Retail Annuity 3.43 4.26 24.2% 3.39 6.16 81.7% protection APE APE Sum assured 7,228.49 8,606.40 19.1% Retail sum 1,639.49 2,282.10 39.2%
Slide 12: Persistency improvement
Persistency improvement Month 9M-FY2024 FY2024 9M-FY2025 13th month 87.4% 88.7% 89.8% 25th month 79.6% 79.7% 81.6% 37th month 71.7% 72.0% 74.5% 49th month 69.3% 70.7% 69.2% 61st month 65.9% 65.6% 65.3% Strong persistency across cohorts Regular & Limited pay persistency in accordance with IRDAI Maste
Slide 13: Productivity improvement
Productivity improvement (₹ billion) 9M-FY2024 9M-FY2025 Y-o-Y Growth Total APE 54.30 69.05 27.2% Total expenses 53.16 63.66 19.8% Cost/Total Premium 18.9% 19.8% - Cost/TWRP1 25.3% 27.8% - Cost/TWRP1 (savings LOB) 16.3% 16.8% - Continued investment in capacity creation to support future growth 1Tota
Slide 14: Resilient balance sheet
Resilient balance sheet Insurance risks Strong solvency ratio • Persistency experience & mortality • Solvency ratio of 211.8% at December 31, experience monitored regularly 2024 ➢ Raised additional sub debt of ₹ 14.00 bn in Q3-FY2025 High quality assets1 Liability profile1 • 95.8% of fixed income in
Slide 15: Financial metrics
Financial metrics (₹ billion) 9M-FY2024 FY2024 9M-FY2025 Value of New Business 14.51 22.27 15.75 VNB margin 26.7% 24.6% 22.8% Profit after Tax 6.79 8.52 8.03 Solvency ratio1 196.5% 191.8% 211.8% AUM1 2,866.76 2,941.40 3,104.14 1 9M: At December 31 of respective financial years; FY: At March 31 VNB:
Slide 16: 3C Framework
3C Framework Customer centricity Competency Catalyst Comprehensive product suite ESG integrated with Customer business management centricity People Tech Analytics Diversified Operational Deliver superior customer distribution efficiency value through appropriate product propositions, seamless onboar
Slide 17: Customer centricity at the core
Customer centricity at the core ~85% of policies issued using digital KYC1 in 9M-FY2025 Claim settlement ratio of 99.3% Ranked no. 1 in the industry for 9M-FY20252; settled within wide customer experience NPS ~50% of savings policies issued 1.2 days3 study for 2nd year in a row4 on same day in 9M-FY
Slide 18: 'C'ompetency: Comprehensive product suite
‘C’ompetency: Comprehensive product suite • Provide right product to right customer • Offer innovative product propositions addressing dynamic customer needs across life stages Comprehensive product suite ESG integrated with Customer business management centricity People Tech Analytics Diversified O
Slide 19: Products across life stages
Products across life stages… Married with Nearing retirement Young & single Married children & retired • Protection • Protection • Protection • Retirement planning • Savings • Health • Child education • Pension • Savings • Retirement planning • Legacy planning • Wealth • Health • Wealth Age 25 - 30
Slide 20: Catering to varied customer needs
…catering to varied customer needs Linked Part Guaranteed Guaranteed Long-term Life Linked & Non-linked savings protection Customer needs Retirement Healthcare planning Linked & Non-linked Available to sell products compliant with IRDAI Q3-FY2025 product/variant launches (Insurance Product) Regulati
Slide 21: Q3-FY2025: Innovation
Q3-FY2025: Innovation Increasing Annuity Option introduced in regular Unique feature of ‘Premium Break’ - allows pay - Industry 1st feature customers 12-month break from paying premiums • Safeguards against inflation Industry 1st health plan designed Offers 4 layers of protection along with exclusiv
Slide 22: 'C'ompetency: Diversified distribution
‘C’ompetency: Diversified distribution • Create depth & width in multi partner shops • Invest & grow in proprietary channels • Deeper penetration in micro markets • To be the “most partnerable insurer” Comprehensive product suite ESG integrated with Customer business management centricity People Tec
Slide 23: Most partnerable Company
Most partnerable Company • ~50% of savings policies ICICI Pru Stack issued on same day in Array of platform 9M-FY2025 capabilities to help • Same day commission us deliver superior available for select value propositions distributors to our customers, in collaboration • New distribution partner with
Slide 24: Distribution reach & strategy
Distribution reach & strategy 46 banks 28% | Bancassurance 1 Strategy: Build profitability 1,250 Partnerships 15%1 | Direct • 3 bank tie-ups done in 9M-FY2025 10%1 | Partnership Distribution Strategy: Digital focused • Access to >22,800 bank branches Strategy: Create depth & upsell campaigns • Prote
Slide 25: 'C'ompetency: Operational efficiency
‘C’ompetency: Operational efficiency Comprehensive product suite ESG integrated with Customer business management centricity People Tech Analytics Diversified Operational distribution efficiency • Enable simplified & Risk & Prudence frictionless processes across policy life cycle 25
Slide 26: Simplified & frictionless onboarding process
Simplified & frictionless onboarding process Leveraging external data Financial underwriting through sources for KYC ecosystem enablers Digital consent (CKYC & Aadhaar) • EPFO, Vahan, Digital GST, ITR and MF based eKYC, Bank pre population statement for income estimation • Document processing throug
Slide 27: Superior customer value at every stage
Superior customer value at every stage Onboarding Payouts Simplified digital Deliver quick, secure, customer onboarding seamless payout • Same day issuance of experience savings policies: ~50% • Digital payout: 92.3% • Digital KYC1: ~85% Persistency Claims3 Seamless renewal Single day claim settleme
Slide 28: 3C Framework
3C Framework Customer centricity Competency Catalyst Comprehensive product suite ESG integrated with Customer business management centricity People Tech Analytics Diversified Operational distribution efficiency Risk & Prudence 28
Slide 29: People strategy aligned to business strategy
People People strategy aligned to business strategy Impact on leadership 77% 91% 100% Building capacity for Leadership cover2 growth Leadership stability Leadership depth1 Leadership positions with More than 10 years vintage More than 3 job rotations adequate cover Supportive environment Impact on c
Slide 30: Leveraging technology to deliver value
Technology Leveraging technology to deliver value 98.8% digital logins & ~9.3 mn digital service 100% e-insurance account interactions every month for eligible base 96.4% service interactions are via self-help / digital 3.5 mn+ app downloads modes 98% of pages with system uptime of more than 99.85%
Slide 31: Technology enabled new business & growth
Technology Technology enabled new business & growth Pre-sales Onboarding & issuance Partner integration • Collaboration platform • InstaPlan • Retail partners: Online meetings, joint sales calls, Pre-sales tool to create customised Partner integration portal | Easy UI invite experts & share content
Slide 32: Technology enabled customer service & claims
Technology Technology enabled customer service & claims Empowering customers Omni channel • Self service • Customer mobile application 1. ~9.3 mn digital service interactions monthly 3.5 mn+ app downloads with best app rating among the 2. >96.4% service interactions are via self-help/ digital modes
Slide 33: Analytics powering new business
Analytics Analytics powering new business Understanding Satisfying Identifying right Seamless process customer customer need distribution Intelligent Product ML based Longevity & risk customer recommendation upsell/cross sell profiling models segmentation engine propensity models Micro market Person
Slide 34: Analytics powering business & product
Analytics Analytics powering business & product Agency Banca/PD Direct Product Analytics driven Analytics driven ML based leads Geographic agent activation campaign strategy assistance product segments Incentives efficacy Pre-issuance Personalised online Market household framework journey integratio
Slide 35: Analytics powering customer service & claims
Analytics Analytics powering customer service & claims Enabling Driving customer Faster settlement Managing maturity renewals satisfaction of claims & foreclosure ML based lapse Early warning Robust claims Smart propensity model model for customer investigation reinvestment dissatisfaction framework
Slide 36: AI & ML fueling business excellence
Analytics AI & ML fueling business excellence Persistency management AI based risk management Focus on extensive utilisation of AI & ML along Utilising AI across policy life stages to provide with data analytics to mitigate insurance risk at superior customer experience onboarding stage Model based
Slide 37: Integrating ESG into business management
ESG Integrating ESG into business management Disclosure under IR1 E S G ESG rating by MSCI framework FY2024 nvironmental ocial overnance Integrated Focus areas AA AA annual report since FY2020 • Environment • Human • Governance & A A capital business • Responsible ethics investing • Data privacy B •
Slide 38: Agenda
Agenda • Company strategy & performance • Opportunity & industry overview
Slide 39: Opportunities in the Indian life insurance industry
Opportunities in the Indian life insurance industry Long-term savings Protection Strong multi-decadal Steady growth opportunity growth opportunity • Significant allocation: 60% of household savings • Protection gap of $16.5 tn for FY20202 towards financial assets for FY20231 • ~13%3 of addressable p
Slide 40: Favorable demography
Long-term savings Favorable demography opportunity Large & growing population base1 High share of working population in India1 Population in mn Population in mn (age group 25-59 years ) 1,422.6 1,438.1 777.5 281.2 343.5 124.4 145 211.1 679.6 51.7 63.2 India Japan Brazil Indonesia S Korea USA S Afric
Slide 41: Financialisation of savings
Long-term savings Financialisation of savings opportunity Household savings1 Distribution of financial savings (including currency)2 80% 85 ` tn 71% 61% 63% 60% 65 57% 52% 56% 60% 17% 52% 18% 17% 45% 41% 17% 17% 18% 45 40% 35.46 17% 36% 20.86 28.28 39% 17% 23.70 40% 19.54 25 13.64 29% 14.53 31.09 20
Slide 42: Low protection penetration
Protection Low protection penetration opportunity Sum assured as % of GDP1,2 Addressable population# Protection gap(%)4,5 332% coverage3 (%) 83 61 55 54 76 71 74 55 252% 251% 16.5 153% 143% 13% 127% 8.4 USD tn 3.9 24% 2.8 2.0 0.9 0.7 0.6 Thailand* USA* Japan* South Korea* India** Malaysia* Singapore
Slide 43: Low sum assured as % of GDP
Protection Low sum assured (SA) as % of GDP opportunity A SA as % of GDP (SA growth @ 20% CAGR) SA as % of GDP1,2 68% 332% India: FY2035 40% 252% 251% 24% 26% B 153% 143% A 127% 111% FY2023 FY2025 FY2030 FY2035 68% 24% B SA as % of GDP (SA growth @ 25% CAGR) Thailand Singapore South Korea (25%CAGR)*
Slide 44: Addressable population
Protection Addressable population (%) opportunity 15% CAGR in new policy count1 20% CAGR in new policy count1 in mn in mn 213.5 213.5 CAGR* CAGR* @10% @10% CAGR* @10% 132.6 CAGR* 132.6 CAGR* 18% CAGR* @10% 25% @10% @10% 82.3 82.3 74.8 74.8 53.5 38.5 19.7 10.9 22.6 9.8 10.9 9.8 FY2024 FY2025 FY2030 F
Slide 45: Strong growth in retail credit
Protection Strong growth in retail credit opportunity Retail credit1 ₹ bn 53,313 41,828 33,870 26,126 25,534 21,916 17,026 19,085 13,922 12,144 10,097 9,339 27,188 6,454 19,912 4,711 13,390 16,844 7,468 9,746 5,386 Mar'14 Mar'16 Mar'18 Mar'20 Mar'22 Mar'23 Mar'24 Home Loans Others • Healthy growth i
Slide 46: Rising retirement population in India
Retirement Rising retirement population in India opportunity Demography shift over next ~25 years1 Faster growth of ageing population2 Age group 2024 2050 100+ 95-99 Future client 90-94 ~35% of the base seeking 85-89 overall annuity 234 population income 80-84 75-79 Today’s 70-74 client base 65-69 ~
Slide 47: Retirement needs are under-served
Retirement Retirement needs are under-served opportunity Retirement savings gap projections1 Pension assets/GDP2 5.0% 7.4% 3.7% 2.3% 9.6% 159.0% Projected retirement savings gap widening CAGR 145.0% 132.1% $ tn 170 130 80.0% 96 64.5% 56.0% 46 32 19 22 12.8% 12 12 8 6.5% US China UK Japan India 2022
Slide 48: Indicators of health opportunity
Health Indicators of health opportunity opportunity Health insurance premium trend1 % of population covered by health schemes2 ₹ bn Uncovered population 1077 895 322 30% 731 253 582 200 345 508 449 252 51% 151 107 137 201 159 107 124 391 410 9% 272 329 235 246 10% FY2019 FY2020 FY2021 FY2022 FY2023
Slide 49: Evolution of life insurance industry in India
Evolution of life insurance industry in India Industry overview FY2002 FY2010 FY2015 FY2024 21.5% (5.8%) New business premium1 (` bn) 116 550 408 11.5% 1,090 10.9% Total premium (` bn) 501 23.2% 2,654 4.3% 3,281 8,299 Penetration (as % to GDP) 2.1% 4.1% 2.6% 2.8% 12.6% 11.4% Assets under management
Slide 50: Historical product & channel mix
Historical product & channel mix IndustryIndustry overviewoverview Industry Private sector 18% 20% 22% 19% 15% 39% 40% 32% 32% 44% Product mix1 Linked 82% 80% 78% 81% 85% Non-linked 56% 61% 60% 68% 68% FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 12% 13% 13% 14% 16% 22% 22%
Slide 51: Annexures: Others
Annexures: Others
Slide 52: Awards & Accolades: Q3-FY2025 (1/2)
Awards & Accolades: Q3-FY2025 (1/2) Digital Customer Experience Best Customer Oriented Best Claims Management Claims Excellence & Servicing & Engagement Insurance Company – Insurance – Life Category ASSOCHAM 16th Global ASSOCHAM 16th Global ASSOCHAM 16th Global FICCI Insurance Industry Insurance Sum
Slide 53: Awards & Accolades: Q3-FY2025 (2/2)
Awards & Accolades: Q3-FY2025 (2/2) Best Security Cloud Sales Champion Best Digital journey with AI Best Risk Management Project of the Year ET NOW Insurance Summit Dine with AlphaSec Awards Gen.AI Conclave SKOCH Digital Transformation and Awards 2024 2024 and Awards 2024 Awards 24 ET: Economic Time
Slide 54: Retirement focus: ICICI Pru PFM
Retirement focus: ICICI Pru PFM Total subscribers Assets under management Net inflows growth growth growth 26% 34% 60% 78% 59% 163% Y-o-Y Y-o-Y Y-o-Y ₹ billion ₹ billion 909 415.87 106.47 in ‘000 677 234.05 40.46 Dec-23 Dec-24 Dec-23 Dec-24 9M-FY2024 9M-FY2025 40% of NPS retirement corpus mandated f
Slide 55: Trend in protection APE
Trend in protection APE FY2022 FY2023 FY2024 ₹ 3.94 bn | ₹ 3.26 bn | ₹ 4.78 bn | ₹ 5.67 bn | Retail ₹ 6.97 bn | Retail ₹ 4.45 bn | Retail Group term protection Group term protection Group term protection 43.2% 30.0% 46.3% 21.7% 29.2% 31.3% ₹ 13.13 bn ₹ 15.04 bn ₹ 15.25 bn ₹ 3.52 bn | ₹ 4.81 bn | ₹ 6
Slide 56: Interest rate risk management
Interest rate risk management Guaranteed return savings product • Derivatives used to lock in yields for future premiums • Underlying bonds for derivatives selected based on tenure of liability Retail protection business • Asset liability duration matching Annuity products • Duration matching & cash
Slide 57: Retail persistency: FY2024
Retail persistency: FY2024 Persistency across product categories 13th month 49th month 88.4% 88.8% 91.6% 83.0% 84.4% 65.9% Linked Non linked Protection Persistency across channel categories 13th month 49th month 91.7% 91.3% 90.9% 76.8% 83.7% 83.4% 68.4% 66.5% Agency Direct Bancassurance Partnership
Slide 58: Value of New Business (VNB)
Value of New Business (VNB) VNB contribution* VNB margin movement 32.0% (1.5)% FY2023 FY2024 (4.1)% (1.8)% VNB 24.6% ` billion 27.65 22.27 2.01 2.61 (7.3%) (11.7%) 10.87 11.44 (39.3%) (51.4%) 14.77 8.22 (53.4%) (36.9%) FY2023 Business Operating Economic FY2024 Mix Assumptions Assumptions Protection
Slide 59: Average APE by product categories
Average APE by product categories Average policy term* (years) 34 35 Segment (₹) FY2023 FY2024 17 19 ULIP 177,057 182,940 Savings Protection Non-linked savings 119,748 114,033 Average customer age* (years) Protection 23,086 36,284 43 43 35 35 Total 118,928 130,593 Savings Protection FY2023 FY2024 *
Slide 60: Channel wise product mix
Channel wise product mix1 Channel category Product category FY2022 FY2023 FY2024 ULIP 70.7% 57.0% 58.6% Non-linked savings 19.2% 31.7% 30.3% Bancassurance Annuity 4.9% 7.3% 5.2% Protection 5.2% 4.0% 5.9% Total 100.0% 100.0% 100.0% ULIP 42.6% 35.6% 46.0% Non-linked savings 48.8% 55.4% 30.6% Agency An
Slide 61: Product wise channel mix
Product wise channel mix1 Product category Channel category FY2022 FY2023 FY2024 Bancassurance 57.0% 46.6% 38.8% Agency 20.8% 26.1% 31.0% ULIP Direct 19.6% 23.7% 24.6% Partnership distribution 2.6% 3.6% 5.5% Total 100.0% 100.0% 100.0% Bancassurance 27.3% 25.0% 33.6% Agency 42.1% 39.1% 34.5% Non-link
Slide 62: Annexures: Embedded value
Annexures: Embedded value
Slide 63: Embedded value (EV)
Embedded value (EV)1 460.18 423.37 385.29 140.32 356.34 115.80 95.66 87.82 ` billion ` billion 319.86 307.56 289.63 268.52 Mar-23 Mar-24 Sep-23 Sep-24 Value of Inforce (VIF) Adjusted net worth (ANW) Continued strong growth in EV 1As per Indian Embedded value (IEV) method Total may not add up due to
Slide 64: Analysis of movement in EV
Analysis of movement in EV 16.91 (0.06) 423.37 22.27 (0.56) (2.88) 0.00 (0.08) 30.71 0.70 356.34 ANW EVOP1 = 50.17 115.80 ANW ROEV2 = 14.1% 87.82 ₹ billion VIF VIF 307.56 268.52 EV (Mar 31, Unwind Operating VNB Persistency Mortality Expense Other Economic Net Capital EV (Mar 31, 2023) Assumption var
Slide 65: Analysis of movement in EV
Analysis of movement in EV1 ` billion FY2020 FY2021 FY2022 FY2023 FY2024 Opening EV 216.23 230.30 291.06 316.25 356.34 Unwind 17.25 16.61 20.85 27.08 30.71 Value of New Business (VNB) 16.05 16.21 21.63 27.65 22.27 Operating assumption changes + Operating variance (0.42) 2.24 (10.56) 0.15 (2.81) Oper
Slide 66: Sensitivity analysis
Sensitivity analysis % change in VNB % change in EV Scenario FY2023 FY2024 FY2023 FY2024 Increase in 100 bps in the reference rates (4.2) (11.7) (3.5) (3.5) Decrease in 100 bps in the reference rates 4.8 10.9 3.7 3.8 10% increase in the discontinuance rates (3.4) (4.8) (0.5) (0.4) 10% decrease in th
Slide 67: Economic assumptions underlying EV & VNB
Economic assumptions underlying EV & VNB Reference rates Tenor (years) March 31, 2024 December 31, 2024 1 7.2% 6.7% 5 7.3% 7.0% 10 7.2% 7.3% 15 7.3% 7.4% 20 7.3% 7.4% 25 7.4% 7.4% 30 7.4% 7.4% EV: Embedded value VNB: Value of new business 67
Slide 68: Glossary (1/2)
Glossary (1/2) • Annualized Premium Equivalent (APE): APE is the sum of the annualized first year premiums on regular premium policies, & ten percent of single premiums, from both individual & group customers • Retail Weighted Received Premium (RWRP): Premiums actually received by the insurers under
Slide 69: Glossary (2/2)
Glossary (2/2) • Value of New Business (VNB): VNB is used to measure profitability of the new business written in a period. It is present value of all future profits to shareholders measured at the time of writing of the new business contract. Future profits are computed based on long-term assumptio
Slide 70: Safe harbour
Safe harbour Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', 'would', ‘indicating’, ‘expected to’ etc., & similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward
Slide 71: Thank you
Thank you FY2024 Annual Sustainability FY2024 ESG Report factsheet Report
ICICI Prudential Life Insurance Company — 9M-FY2025 Earnings Presentation on 6ix