ICICI Life Q3 Review - FY24 To Be Mainly About Topline Growth, With Some Margin Expansion: Yes Securities

Yes Securities Report

There is a long way to go in terms of enhancing the activity and capacity of non-ICICI Bank Ltd. partners. Further, ICICI Prudential Life Insurance Company Ltd. is also working on whom to pitch for in terms of new partnerships.

There has also been an investment in the agency network, which takes one-two years to have impact. In FY24, topline will be the main driver for of new business growth with VNB margin being stable to higher. ICICI Life can grow VNB in line with VNB for the sector, which implies 15-20% compounded growth for VNB.

Total protection annual premium equivalent has grown 22.7% YoY in nine months-FY23 with its share reaching 19.7% in total APE. It is true that sequential momentum in retail protection has come from return of premium but there has been a sequential pick up in retail protection even without ROP.

There are no supply side issues or demand side weakness and it is just that the distribution network is still getting used to changes to under-writing norms, which is a big shift in terms of how protection is being sold.

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