 "ICICI prudential life insurance")
Private life insurer ICICI Prudential Life Insurance recorded a 26 per cent drop in net profit to Rs 173.76 crore in the last quarter of financial year 2024 (Q4 FY24) from Rs 234.87 crore in the year-ago period, on account of increased expenses.
Sequentially, the net profit dropped almost 23 per cent from Rs 227.47 crore in the October-December quarter of FY24.
In the quarter under review, the net premium income of the insurer increased to Rs 2,549.84 crore, rising 9.89 per cent year-on-year (YoY) over Rs 2,320.35 crore in Q4 FY23.
The Annualised Premium Equivalent (APE) of the company rose 9.54 per cent to Rs 3,615 crore from Rs 3,300 crore in Q4 FY23.
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In Q4 FY24, the Value of New Business (VNB) of the company declined 26.44 per cent to Rs 776 crore from Rs 1,055 crore in the corresponding year-ago period. Meanwhile, the VNB margin dropped to 21.46 per cent as compared to 31.97 per cent in Q4 FY23 on the back of a decline in sales of non-participating products after the taxation on higher ticket size policies.
The expenses of the company increased by 9.89 per cent to Rs 2,549.84 crore from the year-ago period. The increase in expenses was driven by over 100 per cent growth in commissions paid, which stood at Rs 1,565.91 crore from Rs 753.51 crore in the year-ago period.
Further, the management said that the change in commission structure led to the increase in expenses. Now, post the completion of commission restructuring, the company expects a moderation in commission. They also added that they are focused on growing their VNB and not fixated on VNB Margin.
The 13th-month persistency ratio of the insurer stood at 88.3 per cent in Q4 FY24 as compared to 81.7 per cent in the year-ago period.
The solvency ratio of the company stood at 191.8 per cent as compared to 208.9 per cent in the year-ago period.
