ICICI Prudential Life Insurance has posted an impressive 39.6% year-on-year increase in Profit After Tax (PAT), reaching ₹1,189 crore for FY25, signalling a strong financial performance and strategic success in the life insurance sector. This growth was primarily driven by the company's expanding retail protection business, improved premium collections, and focus on sustainable growth metrics.

Retail Protection Drives Profit Surge

One of the key growth engines for ICICI Prudential this fiscal year has been its retail protection business, which witnessed a 25.1% rise in Annualised Premium Equivalent (APE). This segment's APE surged to ₹598 crore, showcasing increasing consumer demand for life protection products. Overall, the company’s APE grew 15% year-on-year to ₹10,407 crore, marking the first time it has crossed the ₹10,000 crore milestone.

APE represents the total premium that would be paid in a year if new business sales were converted to annual payments. The robust growth in this area highlights the company’s ability to attract new policyholders and enhance premium income.

Value of New Business and Profitability Metrics

Another vital metric that reflects the profitability of newly sold policies is the Value of New Business (VNB). ICICI Prudential recorded a 6.4% growth in VNB to ₹2,370 crore for FY25. While the VNB margin stood strong at 22.8%, this indicates profitable underwriting and a strong pipeline of quality business.

Retail New Business Sum Assured (NBSA), a crucial indicator of the insurance cover offered under new policies, surged by 37% to ₹3.32 lakh crore. This considerable increase reflects growing awareness among consumers about the need for life cover and the company's successful customer acquisition strategies.

In-Force Business and Solvency Strength

ICICI Prudential’s total in-force sum assured – representing the total life cover under active policies – grew by 15.6% year-on-year to ₹39.43 lakh crore. This growth reinforces the company's ability to retain existing customers while continuing to write new, profitable business.

On the capital front, the insurer showcased strong fundamentals with an Embedded Value (EV) of ₹47,951 crore, which is a 13.3% rise from the previous year. EV is a key indicator of an insurance company’s worth and is used by analysts to determine its market valuation.

Furthermore, the Return on Embedded Value (RoEV) stood at 13.1%, demonstrating efficient capital deployment and profitable growth.

Healthy Solvency Ratio and Dividend Announcement

The solvency ratio, which is a measure of financial strength and risk-bearing capacity, remained very strong at 212.2%, well above the RBI-mandated minimum of 150%. This indicates ample capital cushion to absorb any future shocks and continue its growth trajectory.

Adding to shareholder value, the Board of Directors recommended a final dividend of ₹0.85 per share for FY25, subject to shareholder approval. This dividend reinforces investor confidence and signals healthy cash reserves.

Consistency and Strategic Outlook

ICICI Prudential Life’s strategic focus on profitable retail segments, disciplined underwriting, and technology-led solutions has allowed it to maintain consistency in performance. With an expansive product portfolio and wide distribution network, the company continues to tap into India's growing insurance demand, particularly in Tier 2 and Tier 3 cities.

The life insurance sector in India is witnessing increased penetration, supported by government initiatives, financial literacy, and rising income levels. ICICI Prudential is well-positioned to leverage these opportunities through innovative products, robust capital management, and customer-centric services.

In conclusion, ICICI Prudential Life’s FY25 results highlight a strong financial performance backed by key growth metrics and strategic initiatives aimed at long-term value creation for both customers and investors. As the company continues to strengthen its retail franchise, expand its footprint, and improve operational efficiency, it remains a key player in India's life insurance space.

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