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ICICI Prudential Life Insurance Q2 net profit flat at Rs 302.46 crore

The life insurer had a profit after tax of Rs 301.84 crore in the year-ago period

October 27, 2020 / 07:26 PM IST
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ICICI Prudential Life Insurance posted a flat net profit of Rs 302.46 crore for the September quarter (Q2).

The life insurer had a profit after tax of Rs 301.84 crore in the year-ago period.

The Value of New Business (VNB) for H1FY21 was Rs 606 crore. The private life insurer said the annualised premium equivalent stood at Rs 2,288 crore for the first half of FY21.

Due to this, the VNB margin was 26.3 percent for H1FY21 as compared to 21 percent for H1FY20. The increase in VNB margin is primarily on account of increase in protection mix and growth in non-linked savings, said ICICI Prudential Life Insurance in a statement.

VNB is used to measure profitability of the new business written in a period. It is present value of all future profits to shareholders measured at the time of writing of the new business contract. Future profits are computed on the basis of long term assumptions which are reviewed annually.

The life insurer's embedded value as of September 30, 2020 stood at Rs 25,711 crore showing a 11.6 percent growth over March 31.

N S Kannan, MD & CEO, ICICI Prudential Life Insurance said that with the economy gradually opening up post lockdown, the company is starting to see positive trends emerge.

"On the back of risk averse behaviour of customers, we saw considerable interest for traditional long-term savings products which grew by 45 percent year-on-year for the quarter," he said.

Kannan added that annuity products too registered a growth of 73 percent year-on-year for the quarter.

The unit-linked insurance (Ulip) product mix stood at 46 percent whereas 28 percent is non-linked savings and 20 percent is protection (pure-term) plans.

Kannan said that the Ulip product demand will come back once the market stabilises.

As far as Coronavirus claims is concerned, while Kannan did not disclose the exact numbers he added that the numbers are as per their projections.

He added that the company is on course to double the FY19 VNB in the next three to four years.

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