ICICI Pru Life Q2 results: Net profit jumps 23% YoY to Rs 244 crore

18 Oct 2023 , 10:37 AM

ICICI Pru Life on Tuesday said its standalone net profit rose 23% year-on-year to Rs 244 crore in the quarter ended September. Last year, the same amount was Rs 199 crore.

Net premium income increased by 5% to Rs 10,022 crore in the reporting quarter compared to Rs 9,581 crore in the corresponding quarter last year. 

The new business (VNB) was valued at Rs 1,015 crore and VNB had a  margin of 28.8% in the first half of the current fiscal. The company’s annual excess equivalent (APE) totaled Rs 3,523 crore and the concentration risk of any single distribution channel is minimal. ‘A highly diversified distribution network enables the company to reach a wider customer base to drive growth,’ the company said in a statement. 

 In the first half of 2024, the retail cover business segment APE grew 74% year-on-year, resulting in  20.8% of total APE.

The company believes the shelter offers significant growth opportunities given the country’s ever-dense population. 

The company’s retail new business Sum Assured (NBSA) grew 52% to Rs 1.1 lakh crore in the first half of the year. The total value of NBSA was Rs 4.9 crores. 

 The 13-month retention rate improved by 100 points to 86.9% in the first half of the year. The 49-month retention rate improved by 220 points to 65.8% in the first half of 2024. Persistence shows the percentage of customers who continue to pay renewal fees and indicates the quality of the business. 

To further improve sustainability, the company said it has deployed advanced machine learning models to act as an early warning system that allows for timely action and resolution of customer issues. 

 Assets under management (AUM) at the end of the September quarter were Rs 2.71 lakh crore.

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