On a consolidated basis, ICICI Prudential Life Insurance Company net profit tanked 65% to Rs 62.51 crore on 364.6% surge in total income to Rs 19,898.29 crore in Q4 FY21 over Q4 FY20.
On a standalone basis, the net profit tumbled 64.5% to Rs 63.78 crore on 364.5% surge in total income to Rs 19,897.44 crore in Q4 FY21 over Q4 FY20. The company's net premium income increased by 13.40% to Rs 11,879.28 crore in Q4 FY21 over Rs 10,475.12 crore in Q3 FY20.
New business Annualised Premium Equivalent (APE) grew 27% Y-o-Y (year-on-year) in Q4 FY2021 to Rs 2,509 crore, on the back of 108% Y-o-Y growth in March 2021 to Rs 1,101 crore.
New business sum assured jumped 22.1% Y-o-Y to Rs 2,05,184 crore in Q4 FY2021 along with an expansion in new business premium by 22.9% to Rs 5,133 crore in the same period. The company was able to strengthen its position as the private sector market leader in terms of new business sum assured, with a market share of 13% in 11M FY2021, rising 11.8% from FY2020. The Value of New Business (VNB) for the quarter surged 26% Y-o-Y to Rs 591 crore. VNB margin was at 23.6% in Q4 FY21 as against 23.8% in Q4 FY20.
Embedded Value (EV) for FY21 stood at Rs 29,106 crore compared with Rs 23,030 crore in FY20, rising 26.4% Y-o-Y. Return on Embedded Value (RoEV) was flat at 15.2% during FY2021 over FY2020. Retail Renewal Premium rose 6.1% to Rs 6,758 crore in Q4 FY2021 over Rs 6,367 crore in Q4 FY2020. Annuity New Business Premium soared 213% to Rs 1,083 crore in Q4 FY21 from Rs 346 crore in Q4 FY20.
The firm said that its focus on balance sheet through proper risk management mechanism and investment policy has helped ensure zero Non-Performing Assets (NPAs) since inception and across market cycles. The solvency ratio stood at 217% on 31 March 2021, well above the regulatory requirement of 150%. Assets under Management (AUM) stood at Rs 2,14,218 crore at 31 March 2021, registering a growth of 40% Y-o-Y over 31 March 2020.
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N S Kannan, the managing director (MD) and chief executive officer (CEO) of ICICI Prudential Life Insurance Company, said: "Despite the disruptions caused by COVID-19, we were able to demonstrate resilience in our operations. In this quarter, APE grew by 27% year-on-year with the month of March posting the best ever monthly sales for the company in any year since inception."
"We were able to capitalise on opportunities to build a well diversified product portfolio, on the back of 114.1% and 214.7% year-on-year growth in the traditional savings and annuity product segments respectively in Q4 FY2021. The strong performance was driven in equal measure by over 100 valuable partnerships forged this year, as part of our strategy to deepen and widen distribution. As a result, VNB grew by 26% year-on-year to Rs 5.91 billion for Q4. The VNB margin for the year improved to 25.1%, while the Embedded Value also grew 26.4% to Rs 291.06 billion during the year."
"Throughout the pandemic-affected year, we focussed on putting in place the building blocks for growth. Our resilient Balance Sheet with zero NPAs since inception, robust risk management strategies and a strong solvency ratio of 217% provide a solid foundation for future growth. Together with our growth momentum in Q4 and our well diversified product and distribution mix, we believe we are well poised to achieve our stated objective to double our FY2019 VNB by FY2023, i.e. in 4 years," Mr Kannan added.
The board has approved a final dividend of Rs 2 per equity share for FY2021.
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.
Shares of ICICI Prudential Life spurted 9.81% to Rs 496.60 on BSE. The scrip hovered in the range of Rs 462.35 to Rs 497.45 so far.
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