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ICICI Prudential Life Insurance reported a 29 per cent year-on-year (YoY) drop in net profit in October – December quarter (Q3) of FY23, due to higher outgo in terms of claims and benefits, and higher expenses. Its net profit for the quarter stood at Rs 221 crore in the period under review, compared to Rs 311 crore in the year-ago period.
The insurer earned net premium to the tune of Rs 9,465 crore, up 4.30 per cent from the corresponding period a year-ago.
Its value of new business (VNB) increased 20 per cent YoY to Rs 618 crore in Q3FY23 compared to Rs 515 crore in the year-ago period. VNB is the present value of the future earnings from policies issued during a period. It reflects the additional earnings expected to be generated through the new policies issued.
Meanwhile, annualised premium equivalent (APE) of the insurer stood at Rs 1,822 crore in the reporting period, down 6 per cent over the same period last year. APE is the sum of the total value of regular–or recurring–premiums plus 10 per cent of any new single premiums written for the fiscal year.
New business premium (NBP), which is the premiums acquired from new policies for a particular year, of the insurer grew 4 per cent to Rs 3,928 crore in the same period.
The insurer reported a VNB margin, a measure of profitability of life insurers, of 32 per cent in the nine months ended FY23. In H1FY23, it had reported a VNB margin of 31 per cent.
The company’s thirteenth month persistency ratio improved to 86.1 per cent for 9MFY23 compared to 84.8 per cent for 9MFY22.
Shares of the insurer closed 1.32 per cent higher at Rs 484.35 on the BSE.
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First Published: Tue, January 17 2023. 23:27 IST
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