The total income of the insurer surged by 48% to Rs 12,898 crore in the third quarter boosted by investment income which went up four fold to Rs 4,744 crore.
ICICI Prudential Life Insurance reported a net profit of Rs 302 crore for the December quarter of the current fiscal, a rise of 1.68% from the previous year. The net premium earned by ICICI Prudential Life stood at Rs 8,131 crore in third quarter of FY20 against Rs 7,483 crore in previous financial year, a growth of 8.65%.
The value of new business (VNB) came at Rs 426 crore for Q3 this fiscal compared to Rs 313 crore in the previous year. The protection annualised premium equivalent (APE) for the third quarter stood at Rs 267 crore as against Rs 195 crore in previous financial year. The VNB is used to measure profitability of the new business written in a period, while APE is a measure of new business written by a life insurance company. APE is computed as the sum of annualised first year premiums on regular premium policies, and 10% of single premiums, written by the company during any period from new retail and group customers.
N S Kannan, MD & CEO of ICICI Prudential Life said, “Our aspiration is to double the FY2019 VNB in three-four years. In that context, I am happy to report that we are on track and have been able to grow the VNB by 25% year-on-year to Rs 1,135 crore for 9M-FY2020.”
During the last quarter, ICICI Prudential Life Insurance introduced an innovative protection product, Precious Life, the industry’s first term plan specifically designed for customers who find it difficult to get access to life cover due to existing health conditions.
The 13th month and 49th month persistency (excluding group and single premium policies) stood at 83.1% and 64.3%, respectively, on December 31, 2019. Retail renewal premium registered a growth of 5.0% from Rs 13,609 crore for 9M-FY2019 to Rs 14,287 crore for 9M-FY2020. The total income of the insurer surged by 48% to Rs 12,898 crore in the third quarter boosted by investment income which went up four fold to Rs 4,744 crore.
During 9M-FY2020, the protection APE recorded a growth of 65.7% to Rs 764 crore in the nine months FY2020, as compared to Rs 461 crore in 9M-FY2019. The total assets under management of the company was Rs 1.72 lakh crore on December 31, 2019. The life insurer had a debt-equity mix of 53:47 on December 31, 2019 and over 90% of the debt investments are in AAA rated and government bonds. The stock of ICICI Prudential Life Insurance was up 0.12% on Tuesday and ended the day at Rs 489 on BSE.