Anup Bagchi To Head ICICI Prudential Life As CEO
Anup Bagchi, executive director of ICICI Bank, is set to become CEO of ICICI Prudential Life Insurance on June 19, subject to regulatory and statutory approvals.
In an exchange filing, ICICI Prudential Life announced that the current CEO, NS Kannan, will retire on June 18.
Bagchi, who has been with the group since 1992, has been the executive director of ICICI Bank since February 1, 2017, overseeing the bank's wholesale banking operations. He is expected to focus on annualised premium equivalent (APE) growth after taking over from Kannan, which has been a significant challenge for his predecessor.
According to a Macquarie report, while ICICI Prudential Life saw a compounded annual growth rate of 15-16% in the value of new business (VNB), driven by a doubling of margins to 32% from 16% in 2018, APE growth has been flat, primarily due to a significant reduction in ICICI Bank's channel to APE contribution, now down to 15% from 50% in the past.
According to Suresh Ganapathy, head of financials research at Macquarie Capital, the insurer's current subdued valuations, despite decent VNB growth, are due to weak APE growth. Investors believe VNB growth driven by margins is unsustainable beyond a certain point, according to him.
Following the announcement, ICICI Prudential Life Insurance shares rose 6.50% to 408.85 on the BSE.