ICICI Prudential Life Insurance on Wednesday reported a net profit of Rs 285 crore for the quarter ended June 30, a flat growth of 1% compared to the corresponding quarter a year ago. The private sector life insurer had a net profit of Rs 282 crore in the 2018 June quarter.
The total premium registered a growth of 14.7% from Rs 5,518 crore for Q1-FY2019 to Rs 6,329 crore for Q1FY2020. The annualised premium equivalent (APE) grew by 5.3% from Rs 1,396 crore in Q1-FY2019 to Rs 1,470 crore in Q1FY2020. The annualised premium equivalent is the sum of annualised first-year regular premiums and 10% weighted single premiums and single premium top-ups.
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NS Kannan, MD & CEO of ICICI Prudential Life, said, “The Value of New Business grew by 27% to Rs 309 crore for the first quarter of FY2020. We believe our customer centric approach and digitization initiatives, coupled with the growing needs of protection, savings and retirement for the country’s young working population will continue to drive growth for us. Protection is an underserved segment in the country, our innovative product offerings in this segment has fuelled growth of the protection business by 88% resulting in a protection mix of 14.6% of the overall APE.”
ICICI Prudential’s Life Insurance assets under management (AUM) stood at around Rs 1.64 lakh crore for the first quarter of current financial year. Protection APE grew by 88% from Rs 114 crore in Q1-FY2019 to Rs 214 crore in Q1FY2020. The share of protection business in APE increased from 8.2% in Q1-FY2019 to 14.6% in Q1FY2020. The the 13th month persistency was 84.4% in Q1FY2020. The 49th month persistency improved from 63.8% in FY2019 to 64.2% in Q1FY2020.