ICICI Prudential Life Insurance Company was up 0.13% at Rs 489.05 after the company reported Q3 December 2019 results during trading hours today, 21 January 2020.
Consolidated net profit rose 1.80% to Rs 301.77 crore in Q3 December 2019 as against Rs 296.43 crore in Q3 December 2018. Net premium earned rose 8.66% to Rs 8,131 crore in Q3 December 2019 from Rs 7,482.95 crore in Q3 December 2018. The insurance company reported a 1.98% rise in Profit before Tax (PBT) to Rs 303.06 crore in Q3 December 2019 over Q3 December 2018.Value of new business (VNB), used to measure profitability of the new business written in a period, rose 24.7% to Rs 1135 crore in the nine-months ended December 2019 (9M-FY2020) over the corresponding period of the previous year. VNB margin was 21% for 9M-FY2020 as compared to 17.0% for FY2019. The increase in VNB margin is primarily on account of increase in protection mix.
The annualized premium equivalent (APE), a measure of new business written by a life insurance company, was Rs 5407 crore for 9M-FY2020 as compared to Rs 5343 crore for in the nine-months ended December 2018 (9M-FY2019).
The company offers a range of products across protection and savings solutions to meet the specific needs of customers. During 9M-FY2020, the protection APE recorded a growth of 65.7% to Rs 764 crore in 9M-FY2020 as compared to Rs 461 crore in 9M-FY2019.
The cost to total weighted received premium (TWRP) ratio stood at 16.6% in 9M-FY2020 compared to 15.4% in 9M-FY2019. The cost to TWRP for the savings business stood at 11.1% in 9M-FY2020 compared to 12.0% in 9M-FY2019. TWRP is a measure of total premiums from new and existing retail and group customers received in a period.
The total assets under management of the company was Rs 1,71953 crore at 31 December 2019 which makes it one of the largest fund managers in India. The company had a debt-equity mix of 53:47 at 31 December 2019. Over 90% of the debt investments are in AAA rated and government bonds.
The company's net worth was Rs 7518 crore at 31 December 2019. The solvency ratio was 207.2% against regulatory requirement of 150%.
N S Kannan, MD & CEO of ICICI Prudential Life said, "As articulated earlier, our aspiration is to double the FY2019 Value of New Business (VNB) in 3-4 years. In that context, I am happy to report that we are on track and have been able to grow the VNB by 25% year on year to Rs 1135 crore for 9M-FY2020."
Protection business grew by 66% year on year in the nine months of this financial year, based on our innovative products backed by technology, strong brand, seamless customer on-boarding and best-in-class claim settlement process. During the quarter, we introduced an innovative protection product, Precious Life, the industry's first term plan specifically designed for customers who find it difficult to get access to life cover due to existing health conditions. Our other focus area, annuity business, also grew by 88% in the same period. To ease the life verification process for senior citizens, we recently introduced instant Digital Life Verification for our annuity customers, he added.
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.
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