Building a robust business model for long-term growth

Company

14 Dec 2023 | 5 Min Read

Mr. Anup Bagchi, CEO of ICICI Prudential Life Insurance, discussed the growth outlook of the company with investors.

The Indian insurance industry has strong growth opportunities due to under-penetration and increased focus on insurance in financial planning.

The company expects strong growth across products, with life insurance slightly less popular than NPS/mutual funds but more popular than fixed deposits.

The company is focusing on implementing stronger processes and policies, benchmarking products with competition, and enhancing communication with customers.

The company aims to grow its agency and direct channels at a faster pace to reduce dependence on ICICI Bank.

The regulatory environment is encouraging for growth, with measures implemented by the insurance regulator and the implementation of risk-based solvency and IFRS.

The company has diversified its product mix and distribution mix, with ULIPs and protection products gaining traction.

The company expects healthy growth in Value of New Business (VNB) and a 16% CAGR in VNB over FY23-25.

The company has a strong balance sheet and profitability ratios, with a solvency ratio well above the regulatory requirement.

The company is trading at a P/EV ratio of 1.6x.