ICICI Pru Life Q2FY23 PAT halves to Rs200.12cr as investment income falls sharply on a yoy basis

16 Oct 2022 , 04:49 PM

ICICI Pru Life reported flat -0.97% revenues for the September 2022 quarter on consolidated basis at Rs22,904cr. Sequential revenues are not comparable due to investment provisions made in the June quarter.

For the first half of FY23 the VNB ( value of new business was up 25.1% at Rs10.92 billion while the new business sum assured grew 42% yoy to Rs4,800 billion.

New business premium was up 13.9% at Rs73.59 billion while the AUM grew 3% yoy at Rs2,443 billion. The fall in investment income was due to provisions in sync with rising bond yields.

Embedded value of the business stood at Rs326.48 billion as of September.

PAT for September 2022 halved to Rs200.12cr on the back of sharp fall in investment income amidst rising bond yields.

There was a 17.5% increase in expenses in the quarter including commissions paid, which also put pressure on the profits. Operating expenses increased by 23.1% in the first half.

However, claims and pay outs in the first half fell by 1.1% with most of the COVID pressure out of the way. ICICI Pru Life reported healthy solvency ratio of 200.7% and expense management ratio higher by 230 bps at 14.8%.

Financial highlights for Sep-22 compared yoy and sequentially

	ICICI Prudential Life
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 22,904.35	₹ 23,129.39	-0.97%	₹ -1,461.19	N.A.
Net Profit (Rs cr)	₹ 200.12	₹ 445.62	-55.09%	₹ 156.56	27.82%
Diluted EPS (Rs)	₹ 1.39	₹ 3.09		₹ 1.09
Net Margins	0.87%	1.93%		-10.71%
Solvency Ratio	200.70%	199.90%		203.60%
Expense MGMT Ratio	14.80%	12.50%		16.90%