ICICI Prudential Life Q1 results: Net profit rises 8.9% to Rs 225.4 crore
Photo Credit: Ruby Sharma
ICICI Prudential Life on Wednesday reported an 8.7 per cent year-on-year (Y-o-Y) increase in net profit to Rs 225.4 crore in the April-June quarter of FY25 (Q1FY25) owing to a rise in expenses.
The expenses of the company rose by 32.8 per cent to Rs 198.53 crore in the quarter under review as compared to Rs 149.47 crore in Q1 FY24.
However, the company reported a contraction in the measure of profitability—VNB margin to 24 per cent in Q1FY25 compared to 30 per cent in the corresponding period last year.
Meanwhile, the company’s new business premiums grew by 23.5 per cent Y-o-Y to Rs 3,769 crore, against Rs 3,051 crore in the year-ago period. Its annualised premium equivalent (APE) was up 34.4 per cent Y-o-Y to Rs 1,963 crore during this period. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums.
Commenting on the results, Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance, said, “The topline growth was supported by an increase of 15.1 per cent in the number of policies (NOP) sold during the same period. Our VNB grew by 7.8 per cent Y-o-Y to Rs 4.72 billion in the same period, reflecting the growing profitability of our business.”
“We welcome the regulator’s efforts to increase insurance penetration by improving the customer’s value proposition for non-linked products,” Bagchi added.
In Q1FY25, the solvency ratio of ICICI Prudential Life stood at 187.9 per cent against 203.4 per cent in the year-ago period. The persistency ratio of the insurer remained healthy with the 13th-month persistency ratio at 86.4 per cent while the 61st-month ratio stood at 67.3 per cent in the quarter under review.
First Published: Jul 23 2024 | 7:06 PM IST