Market leader ICICI Prudential Life to list

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ICICI Prudential Life Insurance, India’s largest private sector life insurance company will shortly be listing its shares on the Indian Stock Exchanges.

ICICI Bank, is making an offer for sale of equity shares through a public offer. The Life Insurance arm of the ICICI group, ICICI Prudential Life, has been a market leader amongst private players since 2002. We decided to go through the draft prospectus to understand their past performance and their areas of market leadership. Here are a few findings.

The Company has the largest AUM in the private life insurance sector with Assets under Management over Rs. 1 lakh crore. The DRHP states that funds representing 92.9% of its linked assets with identified benchmarks as at March 31, 2016 had performed better than their respective benchmarks since inception.

According to the document, there has been an increase in the market share of the Company, on a retail weighted received premium basis. ICICI Prudential Life’s market share in the Indian life insurance sector increased from 5.9% in fiscal 2012 to 11.3% in fiscal 2016.

The document says the Company’s gross premium income for fiscal 2016 was Rs. 19,164 crore. Additionally, their profit after tax has seen a growth. From Rs. 1386 crore in fiscal 2012, it has grown to Rs. 1653 crore in fiscal 2016. Their return on equity has exceeded 30% for each year since fiscal 2012.

The DRHP states that superior customer service is an integral part of its value proposition to customers. The Company believes that an easy and simple on-boarding process, efficient service delivery and robust claims management and grievance redressal processes are the key elements of its service value proposition.

By leveraging technology, the Company seeks to provide a seamless service experience to customers through all stages of an insurance policy. The high customer satisfaction and service quality are reflected in the low grievance ratio of 153 per 10,000 policies in fiscal 2016 and the claims settlement ratio of 96.2% in fiscal 2016, making ICICI Prudential Life one of the best in the Indian life insurance sector.

According to the document, in fiscal 2016, over 99% of their claim payouts were settled within IRDAI prescribed timelines, and the average time taken to settle mortality claims was 3.3 days from the date of submission of all required documents and information in relation to the claim.

Sandeep Batra, Executive Director, ICICI Prudential Life Insurance said, “At ICICI Prudential Life we have a ‘Customer First’ approach and our products, distribution channels and processes are designed to offer the best to customers along with superior levels of post-sales service.”