ICICI Prudential Life Insurance Company (ICICI Pru) on Saturday reported over 55% dip in its net profit to Rs 199 crore in the quarter ended in September 2022 due to lower income.
The company’s net profit in the quarter ended in September 2021 was at Rs 445 crore.
The net premium earned by the private sector insurer during July-September 2022-23 was up at Rs 95.82 crore as against Rs 92.86 crore in the same period of 2021-22, ICICI Pru said in a regulatory filing.
However, total income decreased by 2.4% to Rs 226.42 crore from Rs 231.88 crore in the year-ago period, mainly because of fall in investment income.
The investment income in Q2FY23 was down by 6.1% to Rs 130.22 crore from Rs 138.74 crore in Q2FY22. The decrease in investment income is primarily on account of the decrease in market value of the securities held, the company said.
The value of new business (VNB), a key measure of profitability, posted strong growth of 25.1% at Rs 1,092 crore in the first half of FY2023, the insurer said.
The company said its persistency ratios improved across all cohorts with the 13th month ratio, which is representative of the quality of business, standing at 85.9% for H1-FY23, an improvement of 80 bps from year ago period.
“On the back of this strong VNB growth and with a favourable premium base for the coming months, we believe we are on track to achieve our objective of doubling our FY2019 VNB by the end of this fiscal year,” N S Kannan, MD and CEO, ICICI Prudential Life Insurance, said.
He said the two focus areas of annuity and protection, which represent underserved needs of the country, have also done well in the period.