ICICIPRULI - ICICI Prudential Life Insurance Company Limited Share Price

Q1: Shreya Shivani from Nomura: "Regarding the VNB margins of Q3, have the new labor laws' effects been factored into this quarter's margins?"

A1: Yes, we have incorporated the impact of the new labor laws into our disclosures, accounting for a charge of Rs.11 crores. The effect is minimal relative to our overall liabilities due to our internal policy adjustments that mostly countered the new codes, and there are no residual effects expected.

Q2: Shreya Shivani from Nomura: "What is driving the recent trend in 61st-month persistency?"

A2: Changes in regulations starting in 2019 have altered how persistency is calculated. Foreclosure dates were extended, affecting the persistency rate. Despite this change, our assets under management remain stable as customers have more time to revive policies.

Q3: Shreya Shivani from Nomura: "What distribution reforms can we expect from the regulator?"

A3: At present, we await guidance from regulators and committees regarding distribution reforms. Innovations are ongoing in products and processes, but no definitive updates on distribution changes can be provided at this time.

Q4: Swarnabha Mukherjee from B&K Securities: "What on-ground trends are we seeing in our distribution channels?"

A4: While channels like Agency and Banca faced a high base, they are showing signs of recovery. We expect product launches and improved market conditions to facilitate growth as we adapt to consumer demands in various environments.

Q5: Dhiren Salian: "How has GST impacted our overall operations?"

A5: We believe GST reforms will drive growth and are progressively addressing commissions with distributors. This process is vital for maintaining a mutually beneficial relationship while enhancing absolute business growth.

Q6: Dhiren Salian: "What are your expectations for persistency moving into FY2027?"

A6: We anticipate that the persistency should rise as we implement corrective actions for channels demonstrating lower rates. Aiming for 85% and above by mid-next year seems realistic, considering present challenges and adjustments.

Q7: Umang Shah from Banyan Tree Advisors: "Could you explain the rationale behind transferring the pension management subsidiary to ICICI Bank?"

A7: Transferring the PFM aligns with ICICI Bank's direct subsidiary strategy, potentially enhancing synergies and efficiencies in the pension management space while ensuring continued annuity benefits for us.

Q8: Madhukar from JP Morgan: "What outlook do you have for protection growth in the coming quarters?"

A8: The recent GST cuts have positively impacted protection demand, making products 18% cheaper. Given the low penetration rate, we expect sustained growth in retail protection as awareness and affordability rise.

Q9: Vinod Rajamani from Nirmal Bang: "What is the proportion of hybrid ULIPs in your portfolio?"

A9: While we don't disclose specific proportions, it's evident that high sum assured ULIPs are gaining traction. We're seeing substantial demand, especially from affluent customers seeking wealth creation alongside protection.

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