ICICI Prudential Life Insurance reports net profit of Rs 306 crore in Q3

Private sector life insurer ICICI Prudential Life Insurance reported a consolidated net profit of Rs 306 crore for the quarter ending December 2020 (Q3FY21).

The insurer had posted a profit of Rs 302 crore during the same period a year ago.

New business sum assured grew by 22.2 per cent year-on-year during the December quarter. The new business premium rose by 14 per cent year-on-year for the period under review.

The value of new business (VNB) stood at Rs 428 crore for the quarter under review compared to Rs 426 crore during the same period a year ago.

"The company was further able to strengthen its position as the private market leader on new business sum assured, with a market share of 13.0 per cent during the first nine months of the financial year," the insurer said.

New business annualised premium equivalent (APE) for the quarter under review was at Rs 1,660 crore, a sequential improvement of 14 per cent over the September quarter (Q2FY21). However on year-on-year basis APE saw a decline of 18.3 per cent.

Commenting on the performance Mr. N S Kannan, MD & CEO of ICICI Prudential Life Insurance said, “We had a strong VNB performance with the margin improving to 26 per cent for the first nine months this financial year from 21 per cent for the same period a year ago."

"Our product strategy is helping us capitalise on opportunities in the emerging environment without compromising on risk management. During the quarter, traditional long-term savings products grew by 36 per cent year-on-year and annuity products registered a robust growth of 125 per cent year-on-year," he said in a statement.

"During the quarter we crossed a historic milestone of Rs 2 trillion in Assets under Management (AUM), which is an outcome of the growth in new business, strong persistency, lower surrenders and robust fund management. It also reflects the strong customer franchise we have built over the last 20 years," he said.

The solvency ratio stood at 226 per cent on December 31, 2020, well above the regulatory requirement of 150 per cent.

ICICI Prudential Life shares ended 3 per cent lower at the market close.