ICICI Pru Life Q3 net flat at Rs312cr despite sharply lower levels of investment income

19 Jan 2022 , 12:47 PM

ICICI Pru Life Insurance reported -65.44% fall yoy in revenues in the Dec-21 quarter at Rs9,865cr. The big reason for the fall in revenues was a sharp fall in investment income which fell vertically from Rs19,278cr last year to Rs737cr in this quarter.

Premium income was flat with gains in first year premium and single premium policies, while revenues from renewal premiums fell sharply.

For the first 9 months of FY22, the value of new business (VNB) was 34% higher at Rs1,388cr. The total annualized premium equivalent (APE) was Rs.5,125cr yield VNB margins of a healthy 27.1% for the said period.

Customer retention and cost efficiency are the core of an insurance company. Its 13ths month persistence and 61sts month persistency improved to 84.8% and 52.7% respectively. The expenses grew by 25%, which was lower than the new business growth at 30%.

Despite a sharp fall in revenues the net profits have remained flat on yoy basis at Rs312cr. That is because the fall in investment income has been offset by a sharp fall in actuarial provisioning estimates. PAT margins improved substantially from a level of 1.07% in the Dec-20 quarter to 3.16% in the Dec-21 quarter on account of a much smaller revenue base.

Financial highlights for Mar-21 compared yoy and sequentially

	ICICI Prudential Life
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Revenues	₹ 9,865	₹ 28,548	-65.44%	₹ 23,129	-57.35%
Net Profit	₹ 312	₹ 304	2.53%	₹ 446	-29.99%
Diluted EPS	₹ 2.16	₹ 2.12		₹ 3.09
Net Margins	3.16%	1.07%		1.93%
Solvency Ratio	2.02	2.26		2.00
Expense Mgt Ratio	13.50%	11.90%		12.50%
Policyholder Liability Ratio	2494.20%	2180.50%		2591.20%