ICICI Pru Life Q4 PAT falls 65% yoy at Rs.62.51cr on higher actuarial liability

ICICI Pru Life Insurance reported in top line revenues of Rs19,638.53cr for the Mar-21 quarter, lower 31.2% on a sequential basis.

Apr 19, 2021 07:04 IST India Infoline News Service

ICICI Pru Life Insurance reported in top line revenues of Rs19,638.53cr for the Mar-21 quarter, lower 31.2% on a sequential basis. The sequential fall in top line revenues was largely on account of fall in investment income.

On subject of provision for actuarial liabilities, it is lower on a sequential basis but sharply higher on a yoy basis. That is more because of higher claim losses assessed in the fourth quarter based on an actuarial assessment.

Bet profits for the quarter were down sharply by 65% on a you basis and over 79% on a sequential basis. Clearly, elevated COVID risks, higher compensation pay-out and lower investment income due to falling yields have resulted in lower profits in Q4.

If we compare FY21 with FY20, some clear trends are visible for the full fiscal year. In terms of new business generation, savings business saw positive growth while protection production showed negative growth yoy.

Financial highlights for Mar-21 compared yoy and sequentially

ICICI Pru Life Insurance
Rs in Crore Mar-21 Mar-20 YOY Dec-20 QOQ
Total Revenues ₹ 19,638.53 ₹ -7,648.28 N.A. ₹ 28,547.80 -31.21%
Net Profit (PAT) ₹ 62.51 ₹ 178.73 -65.03% ₹ 304.30 -79.46%
Diluted EPS ₹ 0.43 ₹ 1.24 ₹ 2.12
Net Margins 0.32% -2.34% 1.07%
Solvency Ratio 2.17 1.94 2.26
Expense Mgmt. Ratio 11.70% 11.10% 11.90%
Policy Holder Liability Ratio 2230.50% 2017.20% 2180.50%

Key takeaways from the Mar-21 quarter results

  • ICICI Pru Life saw a sharp increase in assets under management or AUM during the fiscal year. The AUM on a yoy basis has gone up from Rs1,53,000cr to Rs2,14,200cr a gain of 40% yoy.
  • For the fiscal year 2020-21, ICICI Pru Life had a 13% market share in terms of new business sum assured. Its VNB margins also expanded to above 25%. The VNB margins also stood at a healthy level of 25.1%. 

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