ICICI Prudential Life Insurance reported a 16% dip in net profit to Rs 341 crore for the quarter ended March 31, 2018. Even for the financial year 2017-18, the life insurer saw its net profit decline 4% to Rs 1,620 crore, primarily on account of higher new business strain resulting from new business growth.
ICICI Prudential Life Insurance reported a 16% dip in net profit to Rs 341 crore for the quarter ended March 31, 2018. Even for the financial year 2017-18, the life insurer saw its net profit decline 4% to Rs 1,620 crore, primarily on account of higher new business strain resulting from new business growth. Sandeep Batra, executive director, ICICI Prudential Life Insurance, said: “We have been focusing on selling customer centric products and our saving business in terms of annualised premium equivalent (APE) grew by 15.4% and protection business by 71.5% during the last fiscal. Robust growth in value of new business (VNB) is attributable to the growth in both savings and protection APE as well as improvements in persistency and cost efficiency.”
VNB is used to measure profitability of the new business written in a period. It is the present value of all future profits to shareholders measured at the time of writing of the new business contract.
VNB for ICICI Prudential Life Insurance increased by 93.1% to Rs 1,286 crore for the fiscal as compared to Rs 666 crore in the previous financial year. The embedded value of the company rose 16.1% to Rs 18,788 crore in the financial year 2017-18. Assets under management stood at Rs 1.39 lakh crore at the end of the last financial year against Rs 1.22 lakh crore at the end of the previous fiscal.
ICICI Prudential’s 13th month persistency improved to 86.9% for the 11 months of FY2018 from 84.7% for FY2017 and the 49th month persistency improved to 62.3% for 11 month-FY2018 from 58.3% for FY2017. In FY2018, the Company achieved a private market share of 20.9% and overall market share of 11.8%. The board also approved a final dividend of Rs 3.30 per equity share (including the special dividend of Rs 1.10 per equity share) for H2-FY2018. This is in addition to the interim dividend of Rs 3.40 per share already declared and paid, bringing the aggregate of total dividend of Rs 6.70 per share for financial year 2018.
“We are excited about the opportunities coming from formalisation of the economy and consequently financialisation of savings. We will continue our efforts to serve the protection and savings needs of individuals in the country,” added Batra. The stock of ICICI Prudential Life Insurance closed at Rs 415.95, gaining 7.09% on the Bombay Stock Exchange on Tuesday.