The insurance company's new business premium was Rs 2,559 crore for the first quarter this fiscal, a growth of 70.6% as compared to Rs 1,499 crore for the same period last fiscal
Private sector life insurer ICICI Prudential Life Insurance on Tuesday reported a net loss of Rs 185.29 crore on a consolidated basis in the first quarter this fiscal. It had posted a net profit of Rs 287.59 crore in the year-ago period.
Its profitability was impacted as it had a total claims of Rs 1,119 crore for the first quarter on account of Covid-19. The claims net of reinsurance was Rs 500 crore.
The insurance company’s new business premium was Rs 2,559 crore for the first quarter this fiscal, a growth of 70.6% as compared to Rs 1,499 crore for the same period last fiscal. Annualised Premium Equivalent (APE) was at Rs 1,219 crore for Q1FY22, a growth of 48.1% as compared to Rs 823 crore for Q1FY21.
Value of New Business for the June quarter was at Rs 358 crore, a significant growth of 78.1% over same period last fiscal. “With an APE of Rs 12.19 billion for the Q1-FY2022, VNB margin was 29.4% for Q1-FY2022 as compared to 24.4% for Q1-FY2021. The increase in VNB margin is primarily on account of shift in the underlying product mix,” said the insurer, promoted by ICICI Bank and Prudential Corporation Holdings.
“For the quarter ended June 30, 2021, the company has assessed the impact of Covid-19 on its operations as well as financial statements, including but not limited to areas of valuations of investment assets, valuation of policy liabilities and solvency. Based on the assessment, the company is carrying a provision (net of reinsurance) of Rs 498.29 crore for Covid-19 claims at June 30, 2021, which is included in the policy liabilities,” ICICI Prudential Life said in the stock exchange filing.
Notably, solvency ratio fell to 193.7% as on June 30, 2021 from 205.1% as on June 30, 2020, while 13th month persistency ratio (by premium) improved to 86% from 82.9%.
Commenting on the results, NS Kannan, MD & CEO, ICICI Prudential Life Insurance, said, “During these difficult times, we remain sensitive to lost lives, health and livelihood issues and continue to prioritise employee, customer and distributor safety. Life insurance has a larger societal role to play in enabling families to have financial security. In this context, our focus during this pandemic has been to help the families of our customers in their hour of need, by settling genuine claims expeditiously.”
Despite the challenges posed by the second wave of the pandemic, the company have been able to demonstrate both resilience and growth in the first quarter, Kannan added.