ICICI Prudential Life Insurance Company (Iproo) recorded a weak performance in the fourth quarter of FY 2025. The company’s annual premium equipment (APE) has come down by 3 per cent to Rs 3,500 crore as compared to a year ago.
The company has been under this pressure due to a decline in unit linked insurance schemes (ULIPs). ULIP contributes 43 percent to APE. However, many analysts have maintained a ‘buy’ rating for the company. It is believed that the impact of negative news has been seen on the stock. The margin of the new business value (VNB) improved in the fourth quarter of FY 2025 to 22.7 per cent, which is 120 basis points and 150 basis points on a quarterly basis compared to a year ago.
Embedded value rose 13 per cent in FY 2025 and ‘Embedded Value Operating Profit’ (EVOP) growth was 10 per cent on an annual basis. The APE increased by 15 per cent to Rs 10,410 crore for FY 2025.
The entire VNB increased by 2 per cent to Rs 800 crore in the fourth quarter and VNB for FY 2025 was Rs 2,370 crore (up to 6 per cent) and the margin of 22.8 per cent. Ipro’s financial year 2025 did not accumulate an early VNB margin of 24 per cent for FY 2025 and a decline in margin.
In the fourth quarter of FY 2025, the company increased the profit (PAT) by 122 per cent to Rs 390 crore, which is better than the estimate. PAT increased by 39 per cent to Rs 1,190 crore for FY 2025.
The management is expected to stabilize the market situation. VNB growth is noted compared to APE growth, which is part of the revaluation of group term plans and attempts to maintain high margin in ULIPs. No specific estimates have been fixed for APE growth. But the minimum target is to increase faster than its 15 per cent industry growth in FY 2026.
The company’s gross premium increased by 11 per cent to Rs 16,830 crore in the fourth quarter of FY 2025 and for the entire financial year 2025 it was increased by 15 per cent to Rs 49,850 crore. The renewal premium rose 9 per cent to Rs 9,210 crore.
In the fourth quarter of FY 2025, APE was under pressure due to 3 per cent weakness in ULIPs and a 16 per cent fall in non-park segment. The offer of a new guaranteed scheme in the fourth quarter of FY 2025 led to a good boom in the non-cross segment. The company was helped to replenish the complete decline to some extent with the help of 115 percent and 9 percent increase in group business and protection business. The VNB margin 120 base points increased to 22.7 per cent due to high participation of non-linked business and increasing contribution of ULIPs.
The trends in retail protection and annuity looked different. Retail protection rose by 26.5 per cent while the annuity section faced a 57.8 per cent decline. The commission expenses were flat at Rs 1,580 crore, while operational expenses decreased by 8 per cent due to higher attention to operating efficiency. The total expenditure declined by 33 per cent to Rs 14,970 crore.
ICICI Prudential Life Insurance has a balanced distribution mixture and may rest in front of the opposite regulations in the Bancasures channel. The agency and direct channels saw a decline of 20 percent and 8 percent.
First Published – April 18, 2025 | 10:50 PM IST
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