ICICI Prudential Life Insurance on Saturday reported a net profit of Rs 156 crore for the fiscal April-June quarter (Q1), compared with a loss of Rs 186 crore in the previous year, aided by significantly lower claims and provisions due to Covid. -19.
The private sector life insurer reported a 32 per cent increase in value of new business (VNB) to Rs 471 crore in the first quarter of FY23, as against Rs 358 crore in the previous year. The insurer's Annualised premium equivalent (APE) is Rs. 1,520 crore, which is 25 percent higher than the same period last year.
The value of new business reflects the additional earnings expected to be generated by new policies issued, whereas APE is the sum of the total value of regular or recurring premiums plus 10 percent of new single premiums written during the financial year.
New business premium - the value acquired from new policies for a particular year - of the insurer grew 24.4 per cent to Rs 3,184 crore in the same period.
The company earned net premiums comprising first year premium, renewal premium and single premium of Rs. 6,884 crore, which is 4.3 per cent higher than the premium earned of Rs 6,601.85 crore in the previous year.
The insurer reported VNB margin, a measure of life insurers' profitability, at 31 per cent compared to 28 per cent margin in FY22, primarily due to a change in the underlying product mix. In the same period last year, VNB's margin was 29.94 percent.
The investment income suffered heavily in the reporting quarter due to market volatility.
The insurer paid claims and benefits of worth Rs 5,512 crore in Q1FY23, down 2.8 per cent from Rs 5,668 crore in Q1FY22.
The death claims, net of amount ceded in reinsurance, declined by 50.6 per cent from Rs 1,068 crore in Q1FY22 to Rs 527 crore in Q1FY23, primarily on account of decline in Covid-19-related cases. The quarter saw Covid-related death claims to the tune of Rs 17 crore.
|