ICICI Prudential Life Q2FY25 results: Net profit rises to Rs 252 crore

The insurer's VNB margin, a measure of profitability, contracted to 23 per cent compared to 28 per cent last year

Private insurer ICICI Prudential Life Insurance's net profit rose marginally by 3 per cent to Rs 252 crore in the July-September quarter of the financial year 2025 (Q2FY25) from Rs 244 in the year-ago period.

Value of new business (VNB) of the insurer increased 1.5 per cent year-on-year (Y-o-Y) to Rs 586 crore in Q2 against Rs 577 crore in the year-ago period. VNB is the present value of all future profits to shareholders measured at the time of writing the new business contract.

The insurer’s VNB margin, a measure of profitability, contracted to 23 per cent as compared to 28 per cent in the last year.

Its annualised premium equivalent (APE) was up 21 per cent Y-o-Y to Rs 2,504 crore. APE is the sum of annualised first year regular premiums and 10 per cent weighted single premiums and single premium top-ups.

In Q2FY25, the solvency ratio of HDFC Life is posted at 188.6 per cent as compared to 199.4 per cent in the year-ago period.

The Board of Directors of the company has approved raising additional capital by issuance of non-convertible debentures upto Rs 1,400 crore, which will further augment the solvency position of the insurance company and aid the ongoing business growth.

The persistency ratio of the insurer in H1 FY25 for 13th month persistency ratio stood at 88 per cent compared to 86.6 per cent in H1 FY25. Meanwhile, the 61st month persistency ratio was at 64.1 per cent in the quarter under review as compared to 63.8 per cent in the year ago period.