ICICI Prudential Life Insurance Company posted 1% rise in standalone net profit to Rs 305.55 crore in Q3 FY21 compared with Rs 302.46 crore in Q3 FY20.
The insurance company's total income jumped 119% to Rs 28,760 crore in Q3 FY21 as against Rs 13,132 crore in Q3 FY20. The company's net premium income increased by 10.3% to Rs 8970.84 crore in Q3 FY21 over Q3 FY20. The result was announced after market hours yesterday, 27 January 2021.The company's profit before tax stood at Rs 350.74 crore in Q3 FY21, 8.5% higher than Rs 323.16 crore in Q3 FY20. Current tax expense was sharply higher at Rs 45.19 crore in Q3 FY21 from Rs 20.7 crore in Q3 FY20.
New business sum assured grew by 22.2% year-on-year in Q3 FY21 along with expansion in new business premium by 14% year-on-year in the same period. 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% during 9M-FY21, up from 11.8% for FY20.
Value of new business (VNB), used to measure profitability of the new business written in a period, rose 0.5% to Rs 428 crore in Q3 FY21 from Rs 426 crore in Q3 FY20. The company's VNB margin improved to 25.7% in Q3 FY21 from 20.9% in Q3 FY20.
New business Annualised Premium Equivalent (APE), a measure of new business written by a life insurance company for Q3-FY2021 was Rs 1666 crore, a sequential improvement of 14% over Q2 FY21.
The total assets under management of the insurance company was Rs 2,04,872 crore at 31 December 2020, a growth of 34% over Rs 1,52,968 crore in 31 March 2020. This is an outcome of the growth in new business, strong persistency, lower surrenders and robust fund management.
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The insurance company said it is focused on maintaining balance sheet resilience through a robust risk management mechanism and investment policy which helped ensure zero Non-Performing Assets (NPAs) since inception and across market cycles. The solvency ratio stood at 226% on 31 December 2020, well above the regulatory requirement of 150%.
Commenting on company's N S Kannan, MD & CEO of ICICI Prudential Life Insurance said, We had a strong VNB performance with the margin improving from 21.0% for 9M-FY2020 to 26.0% for 9MFY2021. As we progressed through the pandemic, our focus has been to put in place the building blocks for future growth. Our product strategy is helping us capitalize on opportunities in the emerging environment without compromising on risk management. During the quarter, traditional long-term savings products grew by 36% year-on-year and annuity products registered a robust growth of 125% year-on-year. Our diversified product mix has the ability to deal with cycles and is better placed for growth.
ICICI Prudential Life is promoted by ICICI Bank and Prudential Corporation Holdings, headquartered in United Kingdom. The company offers and array of products in the protection and savings category which match the different life stage requirements of customers, enabling them to provide a financial safety net to their families as well as achieve their long term financial goals.
The scrip shed 0.15% to Rs 498.30 on the BSE. It traded in the range of 487.45 and 500.85 so far during the day.
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