ICICI Prudential Life reports 47% yoy rise in Q2 PAT to Rs444.57cr

The company posts strong VNB Growth 45% yoy to Rs8.73 billion for H1FY22.

Oct 20, 2021 09:10 IST India Infoline News Service

ICICI Prudential Life Insurance Company Limited reported higher standalone profit at Rs444.57cr in the second quarter ended September 30 of FY22, a rise of 47% yoy against Rs303.22cr during the same quarter in last fiscal. The net premium income of the company increased to Rs9,286.53cr in Q2FY22 from Rs8,572.19cr in Q1FY21.

Profit after tax has decreased from Rs5.91 billion in H1FY21 to Rs2.59 billion in H1FY22. Net premium earned (gross premium less reinsurance premium) increased by 12.5% from Rs141.23 billion in H1FY21 to Rs158.88 billion in H1FY22.

The company showed robust growth in the Value of New Business (VNB) and New Business Premium for the half-year ended September 2021. The Company’s Value of New Business (VNB), a measure of the profitability of a life insurance company, grew by 45% year-on-year to Rs8.73 billion for H1FY22.

The New Business Premium, which highlights business expansion, grew by 45% to ` 64.61 billion for H1FY22 vis-à-vis the same period last year. New Business Sum Assured grew 35% year-on-year to ` 3.37 trillion in H1FY22, enabling the Company to maintain its leadership amongst private sector life insurers with a market share of 13.2%.

The Annuity business segment witnessed strong growth of 95% year-on-year in H1FY22 to Rs13.47 billion. The Company has a well-diversified product mix with linked savings at 48%, traditional savings at 30%, protection at 17% and the balance of 5% accounted for by group savings products.

The Company’s 13th month persistency ratio improved to 85.1% in H1-FY2022, up from 82.1% for the same period last year, indicative of the quality of business being underwritten.

The Company’s solvency ratio stood at 199.9% on September 30, 2021, well above the regulatory requirement of 150%. The Embedded Value stood at ` 302.03 billion at September 30, 2021, a growth of 17.5% over September 30, 2020. The Assets Under Management stood at Rs2,370.87 billion at September 30, 2021, a growth of 31% over September 30, 2020.

N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “The improvement in the pandemic situation with each passing month, increased consumer awareness on the need for life insurance and our suite of customer-centric products have enabled us to grow new business by 62% sequentially this quarter. Significantly, we posted our best ever September on monthly sales for any year since inception, aided by our well-diversified product and distribution channel mix. Our New Business Sum Assured grew by 35% year-on-year to Rs3.37 trillion in H1FY22 and we continued to be the private sector leader with an overall market share of 13.2%.

At around 9.20 am, ICICI Prudential Life Insurance Company Ltd was trading at Rs650.45 per piece down by Rs9.7 or 1.47% from its previous closing of Rs660.15 per piece on the BSE.

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