ICICI Prudential Life Insurance Company Ltd.
Private life insurer ICICI Prudential Life Insurance posted a flat consolidated net profit of Rs 304.3 crore for the December quarter of the fiscal year 2020-21 (Q3FY21).
The life insurer had reported a net profit of Rs 301.77 crore in the year-ago period.
The annualised premium equivalent (APE) stood at Rs 1,666 crore, showing a year-on-year (YoY) decline of 18.3 percent. APE refers to 100 percent of regular premiums and 10 percent of single premiums collected in a given year.
The VoNB stood at Rs 428 crore in Q3FY21 as against Rs 426 crore a year ago.
VoNB is the present value of expected future earnings from new policies written during a specified period and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.
VoNB margin stood at 25.7 percent for the third quarter as against 20.9 percent in the year-ago period.
VoNB margin is the ratio of VoNB to the annualised premium equivalent for a specified period and is a measure of the expected profitability of new business.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said that as the company progressed through the pandemic, the focus has been to put in place the building blocks for future growth.
"Our product strategy is helping us capitalize on opportunities in the emerging environment without compromising on risk management. During the quarter, traditional long-term savings products grew by 36 percent YoY and annuity products registered a robust YoY growth of 125 percent," he added.
As far as death claims are concerned, Kannan explained that the company has paid Rs 150 crore (net of reinsurance) of COVID-19 claims. He added that Rs 100 crore additional provisioning for COVID-19 claims has not been utilised so far.
The solvency ratio stood at 226 percent as on December 31, 2020 as against regulatory requirement of 150 percent. The net worth stood at Rs 8,917 crore at December 31, 2020.
The total assets under management of ICICI PruLife Insurance was Rs 2.04 lakh crore at the end of December 31 showing a YoY growth of 34 percent. The insurer had a debt-equity mix of 54:46. Among the debt instruments, 96.5 percent are in AAA rated securities and government bonds.
ICICI Prudential Life shares ended at Rs 499.39, down Rs 2.65, or 0.53 percent, in today's close on the BSE.