Witnesses significant reduction in expense ratio to 11.8% Experiences strong growth of 61% in renewal premiums.
ICICI Prudential Life Insurance Co. Ltd, India’s dominant private life insurer, garnered a total premium (new business + renewal) of Rs 15,356 crores for the financial year ended March 31, 2009, as against Rs 13,563 crores in FY2008, registering a growth of 13%. The company’s New Business Profit (NBP) stood at Rs 1,004 crores for FY2009, resulting in a stable new business margin of 18.9%.
The company’s customers continued to trust it even during the recent volatility in the markets as reflected in its renewal premiums which is one of the key indicators of customer’s loyalty towards the brand. Renewal premiums have shown a robust growth of 61% and stood at Rs 8,872 crores for FY2009. ICICI Prudential Life’s conservation ratio (an indicator of persistency) stood at 73%. This clearly reflects the customers’ commitment to the brand, as they continue to save for their long-term financial goals through the company’s products.
ICICI Prudential Life continued to remain one of the highest capitalized life insurers in India with an infused capital of Rs 4,780 crores. For consumers, this large capital base further strengthens their trust in the company as it indicates the company’s ability to meet all its policyholder commitments. As on March 31, 2009 the company’s assets under management (AUM) stood at Rs 32,788 crores, making it one of the top retail wealth managers in the country. The company’s investment philosophy of safety, stability & long-term returns to the policyholders, has resulted in ICICI Prudential Life’s funds consistently outperforming their benchmark indices, since inception as well as over the past one year.
For the 11-month period ended February 28, 2009, ICICI Prudential Life continued to retain its position as the leading private life insurer in the country with a market share of 11.8% of the total market1.
FY2009 was a year that witnessed some of the biggest changes in the world economy and financial markets. ICICI Prudential Life was quick to adapt to the changing environment and designed products and service initiatives to enable consumers ride over the volatility. The company concentrated on increasing efficiencies and productivity within the company, without losing focus on the needs of its consumers. The company was successful and its strong renewal inflows are testimony to the fact that consumers continue to trust ICICI Prudential Life when it comes to investing for their long-term financial goals.
With its focus on cost management in FY2009, ICICI Prudential Life has put in place initiatives to ensure that it utilises its resources optimally. This has resulted in significant reduction of its expense ratio and decrease in its losses, considerably. Expense ratio declined sharply to 11.8% in FY2009 as against 14.9% in FY2008. ICICI Prudential Life’s statutory losses for FY2009 stood at Rs 780 crores as against Rs 1,395 crores in FY2008. The company’s focus has been to identify and eliminate wasteful expenditure and it will continue to have a sharp focus on expenses in FY2010.
1 On basis of weighted received premium (WRP), which is 100% of regular premium + 10% of single premium.
Source is http://www.iciciprulife.com, published on Mumbai, April 29, 2009
Wow great company. I am also interested. If such company is exist then our money is in safe side, and i think it beneficiary if I invest on INDIA.
I will do.