RBL Bank and ICICI Prudential Life Insurance forge

 RBL Bank and ICICI Prudential Life Insurance forge Bancassurance Partnership

 

·         398 RBL Bank branches in 28 states will distribute ICICI Prudential Life Insurance’s
protection and savings products

·         Partnership deepens and widens ICICI Prudential Life’s multi-channel distribution network

 RBL Bank and ICICI Prudential Life Insurance have entered into a bancassurance partnership to offer an array of life insurance products to the Bank’s customers. This alliance will enable over 8.7 million customers of RBL Bank to access and seamlessly purchase customer-centric protection and long-term savings products of the Company and provide financial security to themselves and their families.

 

RBL Bank will distribute ICICI Prudential Life’s products through its network of 398 branches spread across 28 states besides it’s internet and mobile banking touch-points, that distinguish the Bank’s multi-channel distribution network. For ICICI Prudential Life, the partnership will deepen and further strengthen its multi-channel distribution network.

 

Through this tie-up, the entire bouquet of ICICI Prudential Life’s insurance plans on the protection and savings platform will be available for purchase to customers of the Bank. ICICI Prudential Life Insurance’s protection products provide a strong foundation for a financial plan and the diversified range of long-term savings products will help the Bank’s customers achieve their financial goals, be it wealth creation, retirement planning or higher education of children. Simultaneously, the partnership will  also provide a financial safety net to the customer’s family by way of a life insurance cover.

 

Vishwavir Ahuja, MD and CEO, RBL Bank said, “We are happy to partner with ICICI Prudential Life and are confident that this strategic alliance will accelerate value creation for both our organisations. As a bank, we are constantly focused on serving the evolving needs of our customers and ensuring that they have a holistic service experience. This collaboration empowers our customers to choose from a comprehensive suite of products and plan for a financially secure future. With our strong distribution reach and digital platforms, we will be able to offer these products instantly to all our customer segments across India.”

 

N S Kannan, Managing Director & CEO, ICICI Prudential Life Insurance said, "We are delighted to partner with RBL Bank, and this mutually beneficial tie up will further deepen our multi-channel distribution footprint in the country. Besides the common philosophy of customer-centricity, both partners have been leveraging technology to provide customers a seamless digital fulfilment journey and superior customer experience. There is a growing awareness among consumers about protection and the need to financially secure self and family following the pandemic. We believe our array of protection and long-term savings products will complement RBL Bank’s offerings and enable their customers to develop a robust financial plan.”

 

ICICI Prudential Life posts a resilient performance

ICICI Prudential Life posts a resilient performance amidst a challenging environment

·         Protection mix improves to 26% of overall APE

·         Annuity new business premium registers a growth of 13.1%

·         VNB Margin expands to 24.4%

·         Assets under Management grows 3.6% to Rs. 1.7 trillion

ICICI Prudential Life Insurance has posted a 13.1% growth in Annuity new business premium and a 14.2% growth in traditional long-term savings business during Q1-FY2021, over Q1-FY2020 despite the challenges arising due to Covid-19.

 With a new business sum assured of Rs. 937.57 billion for the quarter, the Company has achieved a market leadership position, which is an endorsement of customers’ belief, its innovative products and customer-centric initiatives.

A robust risk management mechanism and investment policy, has ensured zero Non Performing Assets (NPAs) since inception and across market cycles. The Company’s solvency ratio for the quarter stood at 205%, well above the regulatory requirement of 150%.

Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “

The Covid-19 pandemic has had an impact on the way consumers perceive life insurance and protection products have therefore seen an increased demand. Even with the movement restrictions in the last quarter, the share of protection in our portfolio increased to 26% of Annualised Premium Equivalent (APE). This resulted in an expansion in the VNB margin from 21% for Q1-FY2020 to 24.4% for Q1-FY2021. Customers trust us to help them achieve their longterm financial goals and despite volatile markets our assets under management grew by 3.6% to Rs. 1.7 trillion for the quarter ended June 2020.

Our robust digital platform enabled us to quickly adapt to the changes in the business environment without any disruption. Besides, our end-to-end digital platform has facilitated a smooth transition of sales processes from a physical to a virtual handshake, which was crucial given the lockdown.”

Mr. Kannan added, “To further strengthen our multi-channel distribution network and to increase our presence in the largely under-penetrated protection opportunity in India, we entered into a bancassurance partnership with IDFC First Bank Ltd. for the distribution of our entire suite of protection and long-term savings products.”

Company Performance

Value of New Business (VNB) growth

The VNB for Q1-FY2021 stood at Rs. 2.01 billion with an expansion in VNB margin from 21.0% in Q1-FY2020 to 24.4% in Q1-FY2021.

Progress on our 4P strategy

Premium Growth

The challenges brought about by the pandemic had an impact on new business premium during the quarter, which decreased from Rs. 22.26 billion in Q1-FY2020 to Rs. 14.99 billion during Q1-FY2021. The Annuity new business premium registered a growth of 13.1% from Rs. 1.91 billion in Q1-FY2020 to Rs. 2.16 billion during Q1-FY2021.

Protection business share

With Rs. 2.14 billion in Q1-FY2021, the Protection APE maintained a consistent performance.  The protection mix improved from 14.6% of APE in Q1-FY2020 to 26.0% of APE for Q1FY2021.

Persistency

The 13th and 49th month persistency ratios have been range-bound and stood at 84.1% and 66.2% respectively at June 30, 2020. Assets under Management stood at Rs. 1.7 trillion as of June 30, 2020.

Productivity

The overall cost ratio i.e. Cost/Total Weighted Received Premium (TWRP) improved from 17.0% in Q1-FY2020 to 14.8% in Q1-FY2021. The cost ratio for the savings line of business also improved from 11.3% in Q1-FY2020 to 8.8% in Q1-FY2021.