ICICI Prudential Life Insurance Company reported a consolidated net profit of Rs 156 crore for Q1 FY23 as compared to a loss of Rs 186 crore for Q1 FY22, primarily due to significantly lower claims and provisions due to COVID-19.
Net premium earned increased by 4.3% to Rs 6,884 crore in Q1 FY23 from Rs 6,602 crore in Q1 FY22. The company reported a negative investment income of Rs 8,496 crore in Q1 FY23 as against a positive investment income of Rs 9,609 crore in Q1 FY22.
Total expenses (including commission) increased by 16.1% to Rs 1,411 crore in Q1 FY23 from Rs 1215 crore in Q1 FY22.
Claims and benefit payouts (net of reinsurance) decreased by 2.8% YoY to Rs 5,512 crore in Q1 FY23, primarily on account of decrease in death claims offset in part by increase in surrender/withdrawal.
Change in actuarial liability, including funds for future appropriation, decreased from Rs 9,569 crore in Q1 FY22 to Rs (8,701) crore in Q1 FY23.
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ICICI Prudential recorded a pre-tax profit of Rs 156 crore in Q1 FY23 as compared with a pre-tax loss of Rs 216 crore in Q1 FY22.
Value of new business (VNB) for Q1 FY23 was Rs 471 crore, a significant growth of 31.6% over Q1 FY22. VNB margin was 31% for Q1 FY23 as compared to 28% for FY22. The increase in VNB margin is primarily on account of shift in the underlying product mix.
Annualised premium equivalent (APE) was Rs 1,520 crore for Q1 FY23, a growth of 24.7% as compared to Rs 1,219 crore for Q1 FY22. New business premium was Rs 3,184 crore for Q1 FY23, a growth of 24.4% as compared to Rs 2,559 crore for Q1 FY22.
The company's 13th month persistency improved from 84.6% in FY22 to 85.5% in 2M-FY23. The 49th month persistency ratio also improved from 63.4% in FY22 to 65.0% in 2M-FY23.
The assets under management of the company stood at Rs 2,30,072 crore at 30 June 2022, which makes it one of the largest fund managers in India.
The company had a debt-equity mix of 54:46 at 30 June 2022 and 98% of the debt investments were in AAA rated and government bonds.
The company's net worth was Rs 9,053 crore as at 30 June 2022. The solvency ratio was 203.6% against the regulatory requirement of 150%.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, Guided by the elements of our 4P strategy of premium growth, protection focus, persistency improvement and productivity enhancement, we believe we are on track to achieve our aspiration of doubling the FY2019 VNB in this fiscal.
Significantly, our efforts to reach out to the underserved customer segments and expansion in the distribution footprint have enabled us to maintain our position as market leader on New Business Sum Assured, which grew by 25% year-on-year in Q1-FY2023, taking the Company's market share to 15.8% in Q1-FY2023.
With a moderating trend in COVID-19 related claims, we expect the country to be in the tail end of the pandemic.
ICICI Prudential Life is promoted by ICICI Bank and Prudential Corporation Holdings. The company offers an array of products in the Protection and Savings category. As at 30 June 2022 the company had an AUM of Rs 2,30,072 crore and a total sum assured of Rs 24,19,000 crore.
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