ICICI Prudential Life Insurance’s net profit for the September quarter remained flat year-on-year at Rs 303 crore. The life insurer saw an increase in net premium earned and total income in the September quarter of FY21.
New business premium recovered in Q2 at Rs 2,957 crore, helping offset some of the decline seen in Q1-FY2021 brought on by the pandemic.
ICICI Prudential Life Insurance’s net profit for the September quarter remained flat year-on-year at Rs 303 crore. The life insurer saw an increase in net premium earned and total income in the September quarter of FY21. Net premium earned by ICICI Prudential Life Insurance was Rs 8,572 crore in the September quarter against Rs 8,065 crore in the corresponding quarter last year. While, net investment income stood at Rs 8,118 crore in the second quarter.
NS Kannan, MD & CEO, ICICI Prudential Life Insurance, said, “We had a strong VNB performance for the quarter with margin improving from 21.1% for Q2-FY2020 to 27.4% for Q2-FY2021. This was supported by a market leading protection performance, with the protection mix for H1-FY2021 at 19.5% compared to 14.8% for H1-FY2020.”
Value of New Business (VNB) is used to measure profitability of the new business written in a period. It is present value of all future profits to shareholders measured at the time of writing of the new business contract. Future profits are computed on the basis of long-term assumptions which are reviewed annually. VNB margin is computed as VNB for the period/APE for the period. It is similar to profit margin for any other business.
“With the economy gradually opening up post lockdown, we are starting to see positive trends emerge. On the back of risk averse behaviour of customers, we saw considerable interest for traditional long-term savings products which grew by 45% year-on-year for the quarter. Annuity products too registered a robust growth of 73% year-on-year for the quarter. The unit-linked business has shown a strong sequential improvement with Q2- FY2021 nearly doubling over Q1-FY2021,” added Kannan.
New business premium recovered in Q2 at Rs 2,957 crore, helping offset some of the decline seen in Q1-FY2021 brought on by the pandemic. As a result, new business premium for H1-FY2021 was Rs 4,456 crore. The annuity business registered a robust growth of 72.5% from Rs 276 crore in Q2-FY2020 to Rs 476 crore of new business received premium in Q2-FY2021; resulting in new business premium of `692 crore for this segment in H1-FY2021. The solvency ratio stood at 205% on September 30, 2020, well above the regulatory requirement of 150%. Assets under management stood at Rs 1.81 lakh crore at September 30, 2020, a growth of 18.6% over March 31, 2020.