ICICI Pru Life confident to double value of new biz premium in FY23 over FY19
Despite hit by the coronavirus pandemic, ICICI Prudential Life is confident of meeting the 2022-23 target of doubling the value of new business premium over the 2018-19 numbers, and has set an annual growth rate of around 30 per cent for the same.
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Mumbai: Despite hit by the coronavirus pandemic, ICICI Prudential Life is confident of meeting the 2022-23 target of doubling the value of new business premium over the 2018-19 numbers, and has set an annual growth rate of around 30 per cent for the same.
To attain the objective set in April 2019, the second-largest private-sector life insurer will continue to increase its focus on protection and savings products. ICICI Prudential Life Chief Financial Officer Satyan Jambunathan said that the company is well on track to meet the 2022-23 target of doubling the value of new business (VNB) premium over the same in 2018-19.
"For this, we have also set a target of growing around 30 per cent annually over the next two years." Its VNB for the nine months of 2020-21 stood at Rs 1,030 crore with a margin of 25.7 per cent, of which Rs 428 crore came in the third quarter. The company's main focus will be on protection products to meet the target of doubling of VNB by 2022-23, he added.
"I am pretty confident that the target is achievable if we grow at 30 per cent over the next two year, which to me is also realistic, despite the fact that the premium is very small for protection policies," he said. ICICI Prudential leads the private life industry when it comes to protection products with a 13 per cent market share, followed by HDFC Life with 11.7 per cent, and LIC with 15.5 per cent leads the market, though its share is down from over 18 per cent last year.
The second-largest private life insurer, with an asset under management (AUM) of Rs 2.05 lakh crore as of December 2020 after SBI Life (2.09 lakh crore), had closed 2018-19 with new business premium of Rs 1,328 crore, which it wants to double by the end of 2022-23. To attain the target, ICICI Prudential is driving protection products that clipped at 14 per cent, traditional long-term savings that grew 36 per cent, and annuity that gained 125 per cent year-on-year in the third quarter, said Jambunathan.
He added that protection products have helped the company increase revenue mix to 17.8 per cent so far this fiscal from 14.1 per cent a year-go. It is also the market leader among private players in new business sum assured with a 13 per cent share, which grew 22.2 per cent as of December, up from 11.8 per cent in FY20, he said.
