ICICI Prudential Life Insurance Q4 net profit down 65%
The life insurer's Value of New Business (VoNB) for the quarter grew 26 percent YoY to Rs 591 crore. The Board has approved a final dividend of Rs 2 per equity share for FY21.
April 19, 2021 / 07:59 PM IST
ICICI Prudential Life Insurance posted a 65 percent year-on-year (YoY) drop in its March quarter (Q4) net profit at Rs 62.51 crore due to new business strain.
The Value of New Business (VoNB) for the quarter grew 26 percent YoY to Rs 591 crore. VoNB for FY21 stood at Rs 1,621 crore with a margin of 25.1 percent compared to 21.7 percent in FY20.
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.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, "Despite the disruptions caused by COVID-19, we were able to demonstrate resilience in our operations. In this quarter, APE grew by 27 percent year-on-year with the month of March posting the best ever monthly sales for the Company in any year since inception."
New business Annualised Premium Equivalent (APE) grew 27 percent year-on-year in Q4FY21 to Rs 2,509 crore.
APE is the sum of annualised first year premiums on regular premium policies, and 10 percent of single premiums, written by the Company during any period from new retail and group customers.
The Embedded Value grew by 26 percent and stood at Rs 29,106 crore as on March 31, 2021. The Return on Embedded Value was 15.2 percent for FY21. The Board has approved a final dividend of Rs 2 per equity share for FY21.