ICICI Prudential Q3 growth impacted by renewals, change in mix

In the life insurance business, balance sheets are driven by the float on the premium received

The third quarter results of life insurance company ICICI Prudential reported a 34.29 per cent decline in its net profit in the third quarter results. The second-largest life insurer said the decline is because, for the nine months of FY19, its annual premium equivalent or APE declined by about 4 per cent, year-on-year. People pay premiums mostly annually, so the APE is defined as the first-year premium on such policies plus a 10 per cent of money paid for single- premium policies.

Why has this happened? ICICI Pru has cited two reasons. First, the big-ticket insurance policies it sells to