ICICI Prudential Life Insurance Company's consolidated net profit rose 0.78% to Rs 286.86 crore in Q1 June 2020 as against Rs 284.64 crore in Q1 June 2019.
Profit before Tax (PBT) rose 8% to Rs 310.45 crore in Q1 June 2020 over Q1 June 2019. Net premium income for Q1 June 2020 was at Rs 5551 crore, falling 10.5% from Rs 6208.13 crore in the same period last year. The result was announced during market hours today, 21 July 2020.The challenges brought about by the pandemic had an impact on new business premium during the quarter,which decreased from Rs 2226 crore in Q1 June 2019 to Rs 1499 crore during Q1 June 2020. The annuity new business premium registered a growth of 13.1% from Rs 191 crore in Q1 June 2019 to Rs 216 crore during Q1 June 2020.
Value of new business (VNB), used to measure profitability of the new business written in a period, tumbled 35% to Rs 201 crore in Q1 June 2020 from Rs 309 crore in Q1 June 2019. The company's VNB margin improved to 24.4% for Q1 June 2020 as compared to 21% in the previous period. 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, stood at Rs 823 crore in Q1 June 2020, tumbling 44% from Rs 1470 crore in the same period last year.
The insurance company's asset under management (AUM) grew by 3.6% to Rs 1,70,006 crore in Q1 June 2020 from Rs 1,64,024 crore in Q1 June 2019. The company's net worth was Rs 7795 crore at 30 June 2020. The solvency ratio was 205.1% against regulatory requirement of 150%.
Commenting on company's performance, N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, "The Covid-19 pandemic has had an impact on the way consumers perceive life insurance and protection products have therefore seen an increased demand. Even with the movement restrictions in the last quarter, the share of protection in our portfolio increased to 26% of Annualised Premium Equivalent (APE). This resulted in an expansion in the VNB margin from 21% for Q1-FY2020 to 24.4% for Q1-FY2021. Customers trust us to help them achieve their long term financial goals and despite volatile markets our assets under management grew by 3.6% to Rs 1.7 trillion for the quarter ended June 2020."
Shares of ICICI Prudential Life Insurance were up 1.88% at Rs 444.40.
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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