ICICI Prudential Life on Tuesday posted a profit of Rs 206.91 crore, up 32.9 per cent in comparison to Rs 155.69 crore during the same period last year, surpassing estimates. The company said that the value of new business (VNB), which represents the present value of future profits, stood at Rs 438 crore, with a VNB margin of 30.0 per cent for Q1FY24. “With customer-centricity at the core, we will continue to focus on growing the absolute VNB, through the 4P strategy comprising Premium growth, Protection focus, Persistency improvement and Productivity enhancement,” the company said.
The total annual premium equivalent (APE) for the quarter ended June 2023 was at Rs 1461 crore, up 3.9 per cent from Rs 1520 crore during the same period last year. “Our efforts towards expanding the protection business are visible in the 62 per cent year-on-year growth in the retail protection segment and this has led to the overall protection business contributing nearly a quarter of the total APE,” it said. According to CNBC TV18 estimates, ICICI Prudential was expected to post !FY24 profit at Rs180 crore, VNB at Rs 435 crore and APE at Rs 1345 crore.
The net premium earned for the quarter stood at Rs 7020.03 crore, up 2 per cent on-year as against Rs 6884.20 crore during the same quarter last year, the company said in a regulatory filing. It said that the total investment income stood at Rs 16030.89 crore in comparison to a loss of Rs 8670.84 crore during Q1FY23.
A comprehensive suite of products coupled with a need-based selling approach has resulted in the New Business Sum Assured, an indicator of the life cover opted for by customers, growing by 8.8 per cent to Rs 240.30 thousand crore for Q1FY24. During the same period, the retail protection Annualised Premium Equivalent (APE) registered a strong year-on-year growth of 61.8 per cent to Rs 110 crore. “A well-diversified distribution network is enabling the Company to reach out to a wider cross-section of customers to drive growth,” it said.
“Our very purpose of existence is to provide financial security to our customers and their families. We believe we are trustees of the life savings entrusted to us by our customers to achieve their protection, retirement, health and long-term savings goals,” said Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance.