ICICI Prudential Life Insurance on Saturday reported a net profit of Rs 156 crore in April-June quarter (Q1) of FY23, compared to a loss of Rs 186 crore in the year-ago period, aided by significantly lower claims and provisions due to Covid-19.
The private sector life insurer saw value of new business (VNB) increase by 32 per cent to Rs 471 crore in Q1FY23, compared to Rs 358 crore in the year-ago period. Annualised premium equivalent (APE) of the insurer stood at Rs 1,520 crore, up 25 per cent over the same period last year.
The value of new business reflects the additional earnings expected to be generated through the new policies issued, whereas, APE is the sum of the total value of regular or recurring premiums, plus 10 per cent of any new single premiums written for the fiscal year.
New business premium – the value acquired from new policies for a particular year – of the insurer grew 24.4 per cent to Rs 3,184 crore in the same period.
The company earned net premiums, which includes first year premium, renewal premium, and single premium, to the tune of Rs 6,884 crore, up 4.3 per cent from Rs 6,601.85 crore premium earned in the year-ago period.
The insurer reported a VNB margin, a measure of profitability of life insurers, of 31 per cent compared to a margin of 28 per cent in FY22, primarily on account of shift in the underlying product mix. In the corresponding period last year, VNB margin was 29.94 per cent.
The investment income suffered heavily in the reporting quarter due to market volatility.
The insurer paid claims and benefits of worth Rs 5,512 crore in Q1FY23, down 2.8 per cent from Rs 5,668 crore in Q1FY22.
The death claims, net of amount ceded in reinsurance, declined by 50.6 per cent from Rs 1,068 crore in Q1FY22 to Rs 527 crore in Q1FY23, primarily on account of decline in Covid-19-related cases. The quarter saw Covid-related death claims to the tune of Rs 17 crore.
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