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Informist, Tuesday, Jul. 15, 2025

--ICICI Pru Life: To continue focus on annuity products

--CONTEXT: ICICI Pru Life mgmt's comments at post-earnings analyst concall

--ICICI Pru Life: Single premium product attractive due to drop in FD rates 

--ICICI Pru Life: Expect demand for unit-linked products to come back   

MUMBAI – ICICI Prudential Life Insurance Co. Ltd. expects demand for unit-linked products to pick up in the second half of 2025-26 (Apr-Mar), the life insurer said in its post earnings analyst concall on Tuesday. 

"So with core fundamentals of the market being where it is for the country and India's demographic still remaining young, I don't think this volatility and uncertainty on unit-link products and these events are going to stay for very long," senior management of ICICI Prudential Life said in the analyst concall. "...I do believe that our outlook on unit-link is not very conservative going forward. I think it is at some point in time towards the second half, you will see Buoyancy coming back."

ICICI Prudential Life Insurance has a well-diversified product mix with annualised premium equivalent contribution from linked, non-linked, protection, annuity, and group funds at 46.8%, 21.5%, 21.9%, 5.4%, and 4.4%, respectively, in the quarter ended June. The value of new business for Apr–Jun was INR 4.57 billion, marking a 3.2% on-year decline. Based on an annualised premium equivalent of INR 18.64 billion for the quarter, the value of new business margin stood at 24.5%.

Usually investors refrain from investing in unit-linked products at the time of uncertainty and market volatily, the management said. The equity market has been volatile in the last couple of quarters with challenges in microfinance segment domestically and uncertainty over tariffs and geopolitical events globally. 

Consequently, in the quarter ended June, a shift was seen from the unit-linked product to the single premium product, the life insurer said. Single premium product became attractive for investors due to a fall in fixed deposit rates following a 75-basis-point repo rate cut by the Reserve Bank of India in this quarter. The life insurance company will continue to focus on annuity products going forward, the management said.

ICICI Prudential Life Insurance earlier in the day reported its earnings for Apr-Jun. The life insurer's net profit rose by 34% on-year to INR 3.02 billion for Apr-Jun. This was higher than the Street's estimate of INR 2.4 billion. Shares of ICICI Prudential Life Insurance Co. closed 0.4% down at INR 669.60 on the National Stock Exchange. End

Reported by Siddhi Chauhan and Sagar Sen

Edited by Deepshikha Bhardwaj

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