ICICI Prudential maintains positive momentum in Q3FY22 business and profitability year-on-year, PAT stands at Rs312cr

19 Jan 2022 , 09:31 AM

ICICI Prudential Life Insurance Company Limited reported higher consolidated profit at Rs312cr in Q3FY22 against Rs304.30cr in Q3FY21. The net profit however dropped sequentially from Rs445.6cr in Q2FY22.

Net premium income of the company rose to Rs9,073.97cr from Rs8,970.84cr yoy. However, it dropped sequentially from Rs9,286.53 in Q2FY22.

Value of New Business (VNB) representing profitability for 9MFY22, grew from Rs10.30 billion in 9MFY21 to Rs13.88 billion in 9MFY22. This was led by robust growth of 30% in New Business Premium for the same period.

At around 9.35 am, ICICI Prudential Life Insurance Company Ltd was trading at Rs586.50 per share down by Rs21 or 3.46% from its previous closing of Rs607.50 per piece on the BSE.

The company said in a filing that during 9MFY22, the Annuity business grew by 75% year-on-year and constituted 20% of the overall New Business Premium. Similarly, the protection business constituted 28% of the overall New Business Premium. With this, the Protection and Annuity segments contributed almost half of the New Business Premium and both these segments are significantly under-penetrated.

The New Business Sum Assured of the Company grew by 25% year-on-year to Rs5,131.63 billion for 9MFY22. A combination of factors such as innovative products, superior customer service and a deep and wide distribution network have helped the Company maintain its market leadership position among private sector life insurers based on New Business Sum Assured.

The Company’s 13th month persistency ratio improved to 84.8% for 9MFY22, up from 82.7% for 9MFY21, indicative of the quality of business being underwritten. Assets under Management stood at ` 2,375.60 billion at December 31, 2021, a growth of 16% over December 31, 2020. This is an outcome of the trust reposed in the Company by customers, growth in new business, strong persistency and robust fund management.

The solvency ratio for 9MFY22 stood at 202%, well above the regulatory requirement of 150%. To meet the growing demand for protection products, the Company, during the quarter, launched ‘ICICI Pru iProtect Return of Premium’ an innovative term insurance product which auto adjusts the life cover based on the customer’s life-stage. Besides it provides cover against 64 critical illnesses which is one of the widest in the industry.

Despite concerns and challenges posed by the onset of the ‘Omicron’ variant, the Company’s robust technology backbone has enabled seamless continuity in operations, be it onboarding or delivering superior service to customers.

N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “We have maintained positive momentum in business and profitability, and have registered a strong year-on-year growth of 35% in the Value of New Business for 9M-FY2022. Given the environment, financial security for self and family including retirement planning has assumed greater significance with growth of 30% in New Business Premium for 9MFY2022. Further, almost half of our New Business Premium for 9M-FY2022 has been contributed by the Protection and Annuity segments. With this strong performance and continued focus on the 4P strategy, we remain on track to achieve our aspiration of doubling the FY2019 VNB by FY2023.

During the quarter, we became a signatory to the United Nations supported Principles of Responsible Investment (UNPRI), the first Indian insurance company to do so. This demonstrates our commitment to sustainability. Also, we are the first insurance company in India to offer an ESG-focused fund to our customers.

As we continue to develop innovative products, leverage technology, expand distribution across platforms and geographies, we remain committed to our vision of securing the protection and long-term saving needs of customers with sensitivity.”