ICICI Prudential Life Insurance Q2 net profit up 22.4% to Rs 244 crore

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ICICI Prudential Life Insurance reported a 22.43 per cent increase in net profit to Rs 244.25 crore in the quarter ending 30 September 2023, from Rs 200 crore on 30 September 2022. The improvement in profitability was supported by a slight uptick in net premium income.


The net premium income of the company rose to Rs 10,022 crore, nearly 5 per cent higher from Rs 9,582 crore in the year-ago period.


Transfer funds from shareholder accounts were Rs 513.73 crore in Q2, as compared to Rs 465.70 crore in the year-ago period.


Commission paid to agents and brokers jumped to Rs 771 crore during the reporting period, from Rs 413 crore during the same period of the previous year. Commission expenses increased by 60.5 per cent from Rs 7.19 billion in H1FY23 to Rs 11.54 billion in H1FY24.


The total Annualised Premium Equivalent (APE) of the insurer stood at Rs 2,062 crore in the quarter under review, marginally higher than Rs 1,999 crore recorded in the year-ago period. APE dropped 41 per cent sequentially from Rs 1,461 crore in the first quarter of FY24.


New Business Premium rose to Rs 1,529.04 crore in the July-September quarter, from Rs 1,444.39 crore during the same period of the previous financial year.


The Value of New Business (VNB) of the third-largest private life insurer dropped to Rs 577 crore in Q2, from Rs 621 crore a year ago.


The VNB Margin also came under pressure as it slipped to 28 per cent from 31.1 per cent in the year-ago period.


“We are focused on growing the absolute VNB with the help of our 4D framework comprising Data analytics, Diversified propositions, Digitalisation, and Depth in Partnerships, to develop quality business in a risk-calibrated manner,” said Anup Bagchi, managing director and chief executive officer of ICICI Prudential Life Insurance.