Private life insurer ICICI Prudential Life Insurance posted a 1.9 percent YoY rise in its December quarter net profit at Rs 302.46 crore on standalone basis.
The net earned premium of the insurer rose to Rs 8,131 crore in Q3FY20 compared to Rs 7,483 crore in the year-ago period.
The Value of New Business (VNB) for the April to December FY20 period was Rs 1,135 crore, showing a year-on-year growth of 24.7 percent while the annualised premium equivalent (APE) stood at Rs 5,407 crore, showing a 1.2 percent YoY growth.
In the APE, which includes 100 percent of regular premiums and 10 percent of single premiums, savings APE dipped by 4.9 percent to Rs 4,643 crore while protection APE grew by 65.7 percent to Rs 764 crore on a YoY basis.
VNB margin was at 21 percent for 9MFY20 compared to 17 percent in FY19.
The company said that the increase in VNB margin is primarily on account of increase in protection mix.
"As articulated earlier, our aspiration is to double the FY19 Value of New Business (VNB) in three to four years. In that context, I am happy to report that we are on track and have been able to grow the VNB by 25 percent year on year to Rs 1,135 crore for 9MFY20," said N S Kannan, MD & CEO, ICICI Prudential Life Insurance.
He added that growth was aided by a jump in both protection and annuity business.
Kannan explained that Ulips (unit-linked insurance products) will continue to be an area of focus apart from protection.
For Q3, linked product business contribution to APE to below 70 percent. This was over 80 percent in the previous fiscal.
For 9MFY20, based on Retail Weighted Received Premium (RWRP), the company had a private market share of 16.6 percent and overall market share of 9.5 percent.
The insurer's 13th month persistency ratio stood at 83.1 percent for 8MFY20, a slight dip from 84.1 percent in the year-ago period. The 61st month persistency was 56.3 percent for the April to November period compared to 55.6 percent a year ago.
The cost to total weighted received premium (TWRP) ratio stood at 16.6 percent in 9MFY20 compared to 15.4 percent in the year-ago period.
The total assets under management of ICICI Prudential Life Insurance was Rs 1,71,953 crore at December 31, 2019, showing a 14.6 percent YoY growth.
The company had a debt-equity mix of 53:47 at the end of December 2019. Over 90 percent of the debt investments are in AAA rated and government bonds.
ICICI PruLife Insurance's net worth was Rs 7,518 crore at December 31, 2019. The solvency ratio was 207.2 percent against regulatory requirement of 150 percent.