LIFE INSURANCE

The Company owns 50% stake in Pramerica Life Insurance (Pramerica), a joint venture (JV) with Prudential International Insurance Holdings. Pramerica has a pan-India presence with more than 16,500 life insurance agents operating from 138 branches across 31 states and union territories. Aided by a healthy balance sheet, Pramerica is poised to sustain an improved growth momentum.

In FY 2023-24, Pramerica covered 4.5 million lives and served customers by increasing its number of offerings with 8 new products. It collected Gross Written Premium (GWP) of ₹ 1,919 crore, the highest since its inception, and grew 58% YoY based on overall New Business Premium (NBP). Its market share increased to 0.71% among private insurers. Embedded Value stood at ₹ 2,055 crore, while Assets Under Management stood at ₹ 8,607 crore, as of March 2024.

At Pramerica, business quality and customer metrics are sustained along with topline growth. Claims Paid Ratio (individual business) was 99% for the year, and Persistency (13^th month) stood at 75%. These ratios have remained broadly consistent for the last four years. As of March 2024, the Solvency Ratio stood at 262%.

Among the recently introduced eight products, three were designed to push the boundaries and provide industry-first features to the customers. Captured below is a brief overview of these propositions:

Zero charge ULIP product “Smart Invest” caters to tech savvy and financially aware customers. Zero allocation and administration charges are its key USPs. The proposition becomes even stronger with a life cover and flexibilities, like free fund switching. Customers also get the benefit of 1% extra allocation, further enhanced by 10% for females, to promote women customers.

“Pramerica Life Flexi Income” offers guaranteed income from as early as second month of policy issuance.

“Group Secured Employee Benefit Plan” offers Group clients the ability to effectively manage employee welfare schemes, such as superannuation, gratuity, leave encashment, post-retirement employee benefits and others. The plan enables:

With the onboarding of 140+ distribution partners across Retail and Group businesses in FY 2023-24, Pramerica is rapidly diversifying its distribution network.

Agency was the fastest growing retail channel, recording APE growth of 65% over the previous year. 69 Agents qualified for MDRT, including 4 Agents who qualified as COT.

Defence is a key segment for Pramerica. With a new business market share of ~50%, Pramerica covers 1 in 6 armed forces personnel. Defence distribution continues to grow rapidly, recording 27% APE growth in FY 2023-24.