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Yes Securities Report
VNB margin – ICICI Prudential Life Insurance Company Ltd.'s calculated VNB margin declined on sequential basis on the back of product mix change and pricing issues:
The VNB margin for Q2 FY25 was 23.4%, down -64 basis points QoQ and -458 bps YoY. While the share of linked business was steady, the share of Par has gone up sequentially. Secondly, in Q2, the company was not able to change the pricing on non-Par and par products as require.
While the yield curve had changed, the company was preoccupied with other product changes (presumably pertaining to surrender rule changes). In terms of commission payouts, the company has been talking to distribution partners and most are understanding of the situation (in terms of surrender rule changes).
Clawback of commission, deferred commission and reduction of commission are all on the table to protect customer interest.
The impact on company is also mitigated by offering longer tenure products, higher sum-assured products and increasing rider attachments.
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