On a consolidated basis, ICICI Prudential Life Insurance Company's net profit rose 2.53% to Rs 312 crore in Q3 December 2021 over Q3 December 2020.
While the company's net premium income rose 1.15% to Rs 9,073.97 crore, net income from investments slumped 96.18% to Rs 737 crore in Q3 December 2021 over Q3 December 2020.Value of New Business (VNB) for 9M-FY2022 was Rs 1388 crore, a growth of 34.8% over 9M-FY2021. With an APE of Rs 5125 crore for the 9M-FY2022, VNB margin was 27.1% for 9M-FY2022 as compared to 25.1% for FY2021. VNB is used to measure profitability of the new business written in a period.
New business premium was Rs 10248 crore for 9M-FY2022, a growth of 29.7% as compared to Rs 7899 crore for 9M-FY2021. Annual Premium Equivalent (APE) was Rs 5125 crore for 9M-FY2022, a growth of 29.6% as compared to Rs 3954 crore for 9M-FY2021. APE is a measure of new business written by a life insurance company.
The company offers a range of products across protection and savings solutions to meet the specific needs of customers. During 9M-FY2022, retail traditional savings APE grew by 33.9% from Rs 1127 crore in 9M-FY2021 to Rs 1509 crore in 9M-FY2022, resulting in an improvement in share of APE from 28.5% in 9M-FY2021 to 29.4% in 9M-FY2022. Protection APE grew by 21.8% year on year to Rs 856 crore and the protection mix stood at 16.7% in 9M-FY2022.
As a result, new business sum assured was Rs 513163 crore for 9M-FY2022, a growth of 24.7% as compared to Rs 411500 crore for 9M-FY2021. Based on new business sum assured, the Company continued to maintain a leadership within the private life insurance sector.
The company has strong focus on improving the quality of business and customer retention which is reflected in 13th and 61st month persistency ratios. The company's 13th month persistency ratio was stable at 84.8% at December 2021 as compared to March 2021. Its 61st month persistency ratio improved to 52.7% at December 2021 as compared to 49.8% to March 2021.
Total expenses grew by 25% year-on-year to Rs 3505 crore for 9M-FY2022. The growth in expense was lower than the new business growth which stood at 30% for the same period. The company's overall cost to Total Weighted Received Premium (TWRP) stood at 17.7% in 9M-FY2022.
The total assets under management of the company was Rs 237560 crore at 31 December 2021, a growth of 16% over 31 December 2020. The company had a debt-equity mix of 52:48% at 31 December 2021. 97.8% of the debt investments are in AAA rated and government bonds.
The company's net worth was Rs 9086 crore at 31 December 2021. The solvency ratio was 202.2% against regulatory requirement of 150%.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, "We have maintained positive momentum in business and profitability, and have registered a strong year-on-year growth of 35% in the Value of New Business for 9M-FY2022. Given the environment, financial security for self and family including retirement planning has assumed greater significance with growth of 30% in New Business Premium for 9M-FY2022. Further, almost half of our New Business Premium for 9M-FY2022 has been contributed by the Protection and Annuity segments. With this strong performance and continued focus on the 4P strategy, we remain on track to achieve our aspiration of doubling the FY2019 VNB by FY2023.
During the quarter, we became a signatory to the United Nations supported Principles of Responsible Investment (UNPRI), the first Indian insurance company to do so. This demonstrates our commitment to sustainability. Also, we are the first insurance company in India to offer an ESG-focused fund to our customers.
As we continue to develop innovative products, leverage technology, expand distribution across platforms and geographies, we remain committed to our vision of securing the protection and long-term saving needs of customers with sensitivity."
ICICI Prudential Life Insurance is promoted by ICICI Bank and Prudential Corporation Holdings. The company offers an 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 digital platform of the company provides a paperless on-boarding experience to customers, empowers them to conduct an assortment of self-service transactions, provides a convenient route to make digital payments for purchasing and making renewal premium payments, and facilitates a hassle-free claims settlement process.
Shares of ICICI Prudential Life Insurance Company tumbled 4.98% to Rs 577.25.
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