ICICI Prudential Life Q2 Results: Swings Back To Profit As New Business Premium Rises
ICICI Prudential Life Insurance Co. swung back to profit surpassing estimates in the second quarter aided by a rise in new business premium.
The private insurer reported a profit of Rs 445.6 crore in the quarter ended September against a loss of Rs 185.3 crore in the preceding three months, according to its exchange filing. That compares with the Rs 354.4-crore profit estimate of analysts tracked by Bloomberg.
Revenue rose 38.3% sequentially to Rs 23,129.4 crore. Analysts' estimates compiled by Bloomberg projected the metric at Rs 8,729.9 crore.
The company reported an operating profit of Rs 475.7 crore against a loss of Rs 215.4 crore a quarter ago. That compares with the Bloomberg estimate of Rs 494.6 crore.
Net premiums earned rose sequentially 41% to Rs 9,286.5 crore.
Persistency ratios by premium for the 13th, 25th, 37th, 49th and 61st months have marginally changed sequentially to 81.3%, 75.7%, 65.7%, 61.9% and 52%, respectively.
Solvency ratio for the quarter ended September is 199.9%. That compares to 193.7% for the quarter ended June.
NS Kannan, managing director and chief executive officer at ICICI Prudential Life, said in a statement that new business rose 62% sequentially as the pandemic situation eases and creates awareness on the need for life insurance. "We posted our best ever September on monthly sales for any year since inception, aided by our well-diversified product and distribution channel mix."
Other Highlights (Half Yearly)
Value of new business grew 45% to Rs 873 crore.
Embedded value stood at Rs 30,203 crore versus Rs 25,711 crore during the six months last year growing 17.5%.
VNB margin expanded to 27.3% from 26.3%.
New business sum assured grew 35% to Rs 3.37 lakh crore. The company enjoyed a market share of 13.2%.
Annuity business grew 95%.
Contribution from linked savings products stood at 48%, traditional savings products at 30% and protection products at 17%.
Assets under management grew 30.6% to Rs 2.37 lakh crore.