ICICI Prudential Q1 profit jumps 33% to Rs 207 crore on investment gains
The company had a debt-equity ratio of 54:46 at June 30 and 97.1% of its fixed income investments were in sovereign or AAA-rated instruments. (photo: shutterstock)
ICICI Prudential Life Insurance reported a 33% jump in first-quarter earnings on Tuesday, as gains in the securities it invested in helped offset subdued premium income growth.
The insurer’s after-tax profit rose to 207 crore ($25.24 million) in the quarter ended June 30, from 156 crore a year earlier, according to an exchange filing.
Investment income reached Rs.16,327 crore as compared to a loss of Rs.8,496 crore a year earlier, due to increase in market capitalization of securities along with higher profit from sale of investments.
Nifty 50 blue chips rose 10.5% in the June quarter, compared to a decline of nearly 10% in the same period a year ago, while the 10-year yield fell 20 basis points.
The company had a debt-equity ratio of 54:46 at June 30 and 97.1% of its fixed income investments were in sovereign or AAA-rated instruments.
Strong investment income has helped it top 2% growth in net premium income at Rs.7,020 crore.
Data from the Insurance Regulatory Authority showed that the government’s proposal to withdraw tax incentives on insurance policies from April spooked buyers, with sales of insurance policies falling year-on-year for every month in the quarter.
The company’s new business value, which measures expected earnings from new installments and is a key measure of growth, fell 7% year-on-year to Rs.438 crore.
Rivals HDFC Life Insurance will publish its results for the first quarter later this week, and SBI Life Insurance will report next week.
Shares of ICICI Prudential rose 0.3% after the results, with a nearly 29% gain so far this year.
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First published: July 18, 2023 | 3:33 p.m ist