ICICI Prudential Life Insurance Q1 profit after tax up 0.9% to Rs 288 cr

ICICI Prudential Life Insurance has posted a 0.9% jump in profit after tax to Rs 288 crore in Q1FY21 from Rs 285 crore in Q1FY20.

It reported 13.1% growth in annuity new business premium and a 14.2% growth in traditional long-term savings business during Q1FY21, over Q1FY20 despite the challenges arising due to Covid-19.

The company’s solvency ratio for the quarter stood at 205%, well above the regulatory requirement of 150%.

The Value of New Business (VNB) for Q1FY21 stood at Rs 201 crores with an expansion in VNB margin from 21.0% in Q1FY20 to 24.4% in Q1FY21.

The challenges brought about by the pandemic had an impact on new business premium during the quarter, which decreased from Rs 2,226 crore in Q1FY20 to Rs 1,499 crore during Q1FY21. The annuity new business premium registered a growth of 13.1% from Rs 191 crore in Q1FY20 to Rs 216 crore during Q1FY21.

The overall cost ratio ie Cost/Total Weighted Received Premium (TWRP) improved from 17.0% in Q1FY20 to 14.8% in Q1FY21. The cost ratio for the savings line of business also improved from 11.3% in Q1FY20 to 8.8% in Q1FY21.

Mr. N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “The Covid-19 pandemic has had an impact on the way consumers perceive life insurance and protection products have therefore seen an increased demand. Even with the movement restrictions in the last quarter, the share of protection in our portfolio increased to 26% of Annualised Premium Equivalent (APE). This resulted in an expansion in the VNB margin from 21% for Q1FY20 to 24.4% for Q1FY21. Customers trust us to help them achieve their long term financial goals and despite volatile markets our assets under management grew by 3.6% to Rs. 1.7 trillion for the quarter ended June 2020. Our robust digital platform enabled us to quickly adapt to the changes in the business environment without any disruption. Besides, our end-to-end digital platform has facilitated a smooth transition of sales processes from a physical to a virtual handshake, which was crucial given the lockdown.”