The Annualized Premium Equivalent (APE) of new business written increased 11% to Rs 2457 crore in Q4FY2019. Protection APE jumped 21% to Rs 261 crore, while saving APE also increased 10% to Rs 2195 crore in Q4FY2019. Protection APE stood at 9.3% of overall APE for FY2019 compared to 5.7% for FY2018.
The Company has strong focus on improving the quality of business and customer retention which is reflected in our best in class 13th month persistency ratios. Our 13th month persistency stands at 86.1% for 11M-FY2019. The 49th month persistency improved to 63.9% in 11M-FY2019 as compared to 62.8% in FY2018.
The Retail weighted received premium (RWRP) was Rs 7095 crore for FY2019 as compared to Rs 7461 crore for FY2018. In FY2019, the Company had a private market share1 of 17.7% and overall market share of 10.3%. The total premium registered a healthy growth of 14.3% from Rs 27069 crore for FY2018 to Rs 30930 crore for FY2019. In Q4FY2019 the Annualised Premium Equivalent (APE) grew by 11% over same period last year. In FY2019, APE stood at Rs 7799 billion.
Retail renewal premium registered a growth of 16% and stood at Rs 20225 crore for FY2019 compared to Rs 17497 crore for FY2018.
The profitability of new business written, as measured in the Value of New Business (VNB), declined 19% to Rs 418 crore in Q4FY2019 from Rs 519 crore in Q4FY2018. The Value of New Business grew by 3% to Rs 1328 crore in FY2019 from Rs 1286 crore in 9MFY2018. The VNB margin increased from 16.5% in FY2018 to 17.0% in FY2019 primarily on account of increase in protection mix.
Net premium earned (gross premium less reinsurance premium) increased by 16% to Rs 10056 crore in Q4FY2019. Retail renewal premium registered a growth of 10% and stood at Rs 6616 crore for Q4FY2019.
The cost to Total weighted received premium (TWRP) ratio stood at 15.0% in FY2019 compared to 13.7% in FY2018.
The total assets under management of the Company was Rs 160410 crore end March 2019 which makes it one of the largest fund managers in India. The Company had a debt-equity mix of 52%:48% at March 31, 2019. Over 90% of the debt investments are in AAA rated and government bonds.
Company's net worth was Rs 70.47 billion at March 31, 2019. The solvency ratio was 215% against regulatory requirement of 150%.
The embedded value per share stood at Rs 150.6 per share end March 2019.
Annual Financial Performance:
Net premium earned (gross premium less reinsurance premium) increased by 14.1% from Rs 26811 crore in FY2018 to Rs 30578 crore in FY2019. Retail renewal premium increased by 15.6% from Rs 17497 crore in FY2018 to Rs 20225 crore in FY2019. Retail new business premium decreased by 3.1% from Rs 8402 crore in FY2018 to Rs 8140 crore in FY2019. Group premium increased from Rs 1170 crore in FY2018 to Rs 2565 crore in FY2019.
Total investment income for FY2019 comprised Rs 7252 crore (FY2018: Rs 8730 crore) under the unit-linked portfolio and Rs 3604 crore (FY2018: Rs 3266 crore) under the non-unit funds. The investment income under unit-linked portfolio is directly offset by a change in valuation of policyholder liabilities. Non unit investment income increased by 10.4% from Rs 3266 crore in FY2018 to Rs 3604 crore in FY2019 primarily on account of increase in interest income corresponding to an increase in interest earning assets.
Other income increased from Rs 75 crore in FY2018 to Rs 89 crore in FY2019.
Total expenses (including commission) increased by 19.6% from Rs 4040 crore in FY2018 to Rs 4829 crore in FY2019. Commission expense increased by 10.5% from Rs 1403 crore in FY2018 to Rs 1551 crore in FY2019. New Business Commission has increased from Rs 1059 crore in FY2018 to Rs 1167 crore in FY2019. Renewal Commission has increased from Rs 344 crore in FY2018 to Rs 384 crore in FY2019. The increase in commission expense is on account of the change in product mix and growth in premium. Operating expenses increased by 24.3% from Rs 2637 crore in FY2018 to Rs 3278 crore in FY2019 on account of increased advertisement cost, business development and stamp duty.
Claims and benefit payouts decreased by 17.5% from Rs 17281 crore in FY2018 to Rs 14259 crore in FY2019 primarily on account of decrease in maturity claims by Rs 1085 crore in FY2019 and decrease in surrenders by Rs 2149 crore from Rs 12761 crore in FY2018 to Rs 10612 crore in FY2019.
Change in actuarial liability, including funds for future appropriation, increased from Rs 15721 crore in FY2018 to Rs 21159 crore in FY2019. Fund reserve, which represents liability carried on account of units held by unit linked policyholders, increased from Rs 9624 crore in FY2018 to Rs 13444 crore in FY2019. The increase in fund reserves is primarily due to a direct offset of lower claims, an increase in premium received offset by lower investment income in the unit-linked portfolio. Non-unit reserve increased from Rs 5824 crore in FY2018 to Rs 7559 crore in FY2019 reflecting broadly the increase in premium net of benefit outgo.
ICICI Prudential Life Insurance: Standalone Policyholders Account
ICICI Prudential Life Insurance: Standalone Shareholders Account
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