Page 18 - Insurance Times June 2023

quarter rose 73% to Rs 4,467 crore business to be driven Allianz Life Insurance and ICICI
during the reporting period. The Prudential Life Insurance show-cause
more by volumes: ICICI Pru
company's total annualised premium notices for evading taxes since 2017,
equivalent (APE) for the financial year Life MD as part of a probe spanning 16 insurers
stood at Rs 13,336 crore, up 36% from and about $610 million in unpaid dues,
Expansion in value of new business
Rs 9,758 crore recorded in previous three sources said.
(VNB) for ICICI Prudential Life
year. Individual APE was up 39% at Rs
Insurance is now likely to be driven The probe, started in September last
11,401 crore from Rs 8,168 crore in
more by volumes rather than margins, year, is a crackdown on the insurance
previous year. Total premium income
according to MD and CEO NS Kannan. industry's practice of accounting for all
for the year rose to Rs 57,533 crore,
"Our target will continue to be sales commissions above the regulator-
an increase of 25% from Rs 45,963 prescribed limit as advertising and
expansion in VNB as a key metric, but
crore in the year-ago period. marketing costs, and then claiming tax
probably in the medium term, it will be
The full-year profit after tax rose credit, two of the sources said.
driven more by growth rather than
12.6% to Rs 1,360 crore. The
margins; a bit opposite to what we did Tax authorities estimate that 16
company's value of new business rose
in the last four years where there was insurance companies in all owe the
37% to Rs 3,674 crore from Rs 2,675
more margin-driven growth," Kannan government about 50 billion rupees
crore in previous year.
said. ($610 million) in unpaid taxes, interest
"The RBI has permitted HDFC Bank or and penalties since July 2017, when
"Now you could see margins stabilising
HDFC to increase their shareholding in India implemented goods and services
or even going up a little bit, but
HDFC Life to more than 50% prior to tax (GST), two sources said.
volumes being the primary contributor
the effective date, thus clearing any
of VNB", he said adding that over the
uncertainty around HDFC Bank's last few years, bulk of the VNB growth LIC: Profitable growth is
eventual shareholding in us. We look
had come through margin expansion
forward to collaborating with our the main objective
and product mix change.
parent-to-be, towards creating value The Life Insurance Corporation of India
for all stakeholders," said HDFC Life (LIC), the largest insurance company by
Bajaj Allianz, ICICI Pru face
MD & CEO Vibha Padalkar. market capitalisation in India, said
tax evasion charge profitable growth is its main objective.
Expansion in value of new India's tax authority has sent Bajaj In accordance with its objective of
profitable growth, the company plans
to have a pipeline of good margin
Siddhartha Mohanty appointed as new LIC chairman
products that will be promoted, LIC
till June '24 said in a conference call with analysts
The government appointed Siddhartha Mohanty as the Chairperson of the on May 25.
Life Insurance Corporation of India (LIC) till June 29, 2024. Non participating (Non par) products
Mohanty, the current Managing Director, has been serving as the interim are generally better margin products
Chairperson of the public sector life insurer since March 14. He replaced M in a favourable interest rate cycle, said
R Kumar, who completed his term on March 13, 2023. the head of private wealth
management at a financial services
Mohanty joined LIC in 1985 as an apprentice officer and has rich experience
company.
in the insurance sector.
The insurer is gradually aiming to
He previously served as COO and CEO of LIC Housing Finance Ltd and has
diversify its product mix by increasing
held various other positions, such as senior divisional manager of Raipur and
its non par business share. This is
Cuttack, chief (legal), chief (investment - monitoring & accounting),
evident from LIC’s individual business
executive director (legal), amongst others.
share of Non-par climbing higher to
There are three managing directors at LIC - M Jagannath, Tablesh Pandey 8.89 percent in FY23, from 7.12
and Mini Ipe.
percent in FY22.
The Insurance Times June 2023 17