On a consolidated basis, ICICI Prudential Life Insurance Company reported a net loss of Rs 185.29 crore in Q1 FY22 as against net profit of Rs 286.86 crore in Q1 FY21.
The company had posted a net profit of Rs 62.51 crore in Q4 FY21. Total income declined 12.2% to Rs 16,724.05 crore in Q1 FY22 over Q1 FY21. Sequentially, the company's total income declined 14.8%.
While the company's net premium income has risen by 18.9% to Rs 6,601.85 crore, net income from investments have declined by 29.5% to Rs 9,210.27 crore in Q1 FY22 over Q1 FY21.
The company's net premium income declined 44.4% in Q1 FY22 from Rs 11,879.28 crore recorded in Q4 FY21.
The life insurer recorded a pre-tax loss of Rs 215.36 crore in the first quarter of FY22. It had recorded a pre-tax profit of Rs 310.45 crore in the same period last year.
The company wrote back tax provisions worth Rs 30.07 crore during the quarter.
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The Value of New Business (VNB), which is a measure of the profitability of the company, grew by 78% year-on-year to Rs 358 crore for Q1-FY2022. The VNB margin expanded from 24.4% for Q1-FY2021 to 29.4% for Q1-FY2022.
The company's new business premium grew by 71% to Rs 2,559 crore for Q1-FY2022 over the same period last year, reflecting the strong growth momentum in the business.
Despite the disruptions of the second wave of COVID-19, new business sum assured grew by 89% year-on-year to Rs 1.77 lakh crore in Q1-FY2022. Significantly, the company gained an overall market leadership position in terms of new business sum assured, with a market share of 14.7% in Q1-FY2022, up from 12.5% for FY2021.
The company continued to maintain a well-diversified product mix with strong growth across product segments including the annuity business which grew by 159% year-on-year in Q1-FY2022.
The contribution from linked savings products stood at 44%, traditional savings products at 29% and protection products at 22% for Q1-FY2022. The balance came from group savings products.
The company's 13th month persistency ratio improved to 87.6% in Q1-FY2022, up from 84.1% for the same period last year, indicative of the quality of business being underwritten.
The overall cost ratio i.e. cost/total weighted received premium (TWRP) stood at 20.1% in Q1-FY2022. The cost ratio for the savings line of business stood at 11.9% in Q1-FY2022.
Assets under Management stood at Rs 2,23,171 crore at 30 June 2021, a growth of 31% over 30 June 2020.
The solvency ratio was 193.7% against the regulatory requirement of 150%.
Offering details on the impact of COVID-19 on mortality, the company said that total claims on account of COVID-19 for Q1 FY22 were Rs 1,119 crore as against Rs 354 crore in FY2021.
Net of reinsurance, the claims amounted to Rs 500 crore in Q1 FY22 compared with Rs 198 crore in FY21. The company's net COVID-19 claims in Q1-FY2022 were 2.52x that of claims in FY2021.
"Provision of Rs 498 crore (March 2021: Rs 332 crore) held for future COVID-19 claims including IBNR (incurred but not reported)." It added, "Q1-FY2022 net claims plus provisions held at June 2021 covers 5 times the net claims in FY2021."
N S Kannan, MD & CEO, ICICI Prudential Life Insurance, said, "Despite the challenges posed by the second wave of the pandemic, we have been able to demonstrate both resilience and growth in this quarter. With this strong growth momentum along with our well-diversified product and distribution mix, we believe we are well positioned to achieve our stated objective of doubling our FY2019 VNB by FY2023."
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 fell 3.39% to end at Rs 604.85 on the BSE yesterday.
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