MOSL: THE CORNER OFFICE (ICICI PRUDENTIAL LIFE INSURANCE) — Persistency, margins on track-return ratios steady
THE CORNER OFFICE (ICICI PRUDENTIAL LIFE INSURANCE) — Persistency, margins on track; return ratios steady; Protection – key growth driver; PAR segment to gain traction
Mr. N.S. Kannan; MD & CEO
Mr. Kannan is the Managing Director & CEO of ICICI Prudential Life Insurance Company since June’18 and before that was the Executive Director of ICICI Bank till June 2018 and has been with the ICICI Group for over 28 years. He joined the Group as a Project Officer. During his tenure at ICICI Group, he has handled Project Finance, Infrastructure Finance, Structured Finance and Treasury functions. He is a post-graduate in management from the Indian Institute of Management, Bangalore with a gold medal for the best all-round performance.
We hosted a boardroom discussion with Mr N S Kannan (MD & CEO) and Mr Satyan Jambunathan (CFO) of ICICI Prudential Life Insurance (IPRU). Key takeaways:
ULIP to remain dominant segment: IPRU reported a 2.1% YoY decline in savings business APE in 1QFY20 and growth trajectory remains tepid even in 2QFY20 YTD (1% YoY APE growth). Accordingly, the share of ULIP in total APE has declined to ~70% from ~85% in FY17, while that of the protection business has increased sharply. However, the company cited ULIP will remain a dominant business segment and contribute 60-70% of total APE over the medium term. IPRU has consciously improved the granularity of its ULIP business and reduced the average ticket size from INR180k last year to ~INR150k. This will help it maintain stable growth and drive an improvement in the persistency levels.
ICICI Prudential Life Insurance Company Limited is a life insurance company, which is a joint venture between ICICI Bank Limited and Prudential Corporation Holdings Limited. The Company provides life insurance, pensions and health insurance to individuals and groups. It conducts business in participating, non-participating and unit linked lines of businesses. Its segments include Par Life, Par Pension, Non Par, Annuity Non Par, Health, Linked Life, Linked Pension, Linked Health and Linked Group. It offers term plans, such as ICICI Pru iProtect Smart; unit linked insurance plans (ULIPs), such as ICICI Pru Wealth Builder II and ICICI Pru Elite Life II; child education insurance plans, such as ICICI Prudential SmartKid with Smart Life; retirement plans, such as ICICI Pru Easy Retirement; traditional savings/money back plans, such as ICICI Pru Cash Advantage and ICICI Pru Savings Suraksha, and Health insurance. It offers products on retail, mortgage and group platforms.
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