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ICICI Prudential Life Insurance Company on Tuesday said its standalone net profit remained flat at Rs 406 crore during the first quarter ended June 30, on higher commission payout and fall in investment income.
The life insurer had earned a net profit of Rs 405 crore in the corresponding quarter last fiscal.
"PAT increased...To Rs 406 billion in June quarter primarily due to increase in net premium earned with lower expenses & lower policy liabilities and offset, in part by increase in commission & claims and lower investment income," the company said in a regulatory filing.
The company earned a net premium of Rs 4,820 crore during April-June of 2017-18, up from Rs 3,509 crore in the same period last fiscal.
Total income fell to Rs 8,456 crore for the quarter, from Rs 9,074 crore in the year-ago period.
There was a decline in investment income in the June quarter to Rs 3,619 crore, as against Rs 5,551 crore in the same quarter last fiscal, while commission outgo jumped to Rs 216 crore from Rs 126 crore.
"The increase in commission expense is broadly in line with the change in product mix and increase in premium," it added.
In view of seasonality of industry, the financial results for the quarter are not indicative of full year's expected performance, ICICI Prudential Life said.
Value of new business (VNB)-- a barometer to gauge profitability of the new business written -- for June quarter of 2017-18 stood at Rs 182 crore.
However, this number for the June quarter last year was unavailable because quarterly computation of VNB was started from first half of 2016-17, it said.
ICICI Prudential Life said it has been consistent in retaining its market leadership position amongst private players and have achieved a private market share of 28 per cent and overall share of 15.3 per cent as on June 30, 2017.
The Annual Premium Equivalent (APE) -- a measure of new business written -- grew by 68.4 per cent to Rs 1,704 crore for the first quarter compared to 1,012 crore in the year-ago period.
Shareholders of the company at the meeting held today approved a final dividend of Rs 3.50 per share for fiscal ended March 2017.
ICICI Prudential Life is a joint venture between ICICI Bank and Prudential Corporation Holdings Limited of the United Kingdom.
Shares of the company closed 0.30 per cent down at Rs 467.50 on BSE today.