ICICI Prudential Life Insurance Company's standalone net profit rose 0.5% to Rs 303.22 crore in Q2 September 2020 from Rs 301.86 crore in Q2 September 2019.
Total income surged 105.08% to Rs 16,835.36 crore in Q2 September 2020 as against Rs 8,209.08 crore in Q2 September 2019.
Net premium income increased by 6.3% year-on-year (YoY) to Rs 8,572.19 crore in Q2 September 2020 over Q2 September 2019.
The life insurer reported a net income from investments of Rs 7,949.37 crore in Q2 FY21 as against a net loss from investments of Rs 126.90 crore in Q2 FY20.
Profit before tax in Q2 FY21 stood at Rs 329.94 crore, up by 7.7% from Rs 306.34 crore in Q2 FY20. Provision for tax was Rs 26.72 crore in Q2 September 2020 as compared to Rs 4.48 crore in the same period last year.
Value of new business (VNB), used to measure profitability of the new business written in a period, rose 0.3% to Rs 401 crore in Q2 September 2020 from Rs 400 crore in Q2 September 2019. The company's VNB margin improved to 27.4% in Q2 FY21 from 21.1% in Q2 FY20.
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New business Annualised Premium Equivalent (APE) for Q2 FY21 was Rs 1,465 crore, a 78% growth over the APE for Q1 FY21.
Assets under management stood at Rs 1,81,492 crore at 30 September 2020, a growth of 18.6% over 31 March 2020. The solvency ratio stood at 205% on 30 September 2020, well above the regulatory requirement of 150%.
On a consolidated basis, the life insurer's net profit increased by 0.21% to Rs 302.46 crore on a 6.3% rise in operating income to Rs 8,572.19 crore in Q2 September 2020 over Q2 September 2019.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, With the economy gradually opening up post lockdown, we are starting to see positive trends emerge. On the back of risk averse behaviour of customers, we saw considerable interest for traditional long-term savings products which grew by 45% year-on-year for the quarter. Annuity products too registered a robust growth of 73% year-on-year for the quarter. The unit-linked business has shown a strong sequential improvement with Q2- FY2021 nearly doubling over Q1-FY2021.
As part of our strategy to deepen and widen distribution, we forged new strategic partnerships with IndusInd Bank and NSDL Payments Bank.
Sensitivity on claims management is critical in these uncertain times. We continue to improve upon our industry leading benchmark on turn-around time for claims with the average number of days for non-investigated claims at 1.4 days for H1-FY2021.
During the half year, over 90% of all service transactions were conducted by customers in self help mode and renewal collections through digital mode increased to 80%.
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 shed 0.64% to Rs 409.75 on the BSE. It traded in the range of 409.15 and 422 so far during the day.
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