ICICI Prudential Life's Q3 results: Net profit rises 43% to Rs 325.65 crore

ICICI Prudential Life Insurance on Tuesday reported a 43.17 per cent year-on-year (Y-o-Y) growth in net profit to Rs 325.65 crore for the October–December quarter of FY25 (Q3 FY25), compared to Rs 227.5 crore in the same period last year.

 

The value of new business (VNB)—the present value of future profits expected from new policies sold during a given year—rose by 18.6 per cent Y-o-Y to Rs 517 crore in Q3, compared to Rs 436 crore in the year-ago period.

 

The VNB margin, the profitability margin of the life insurer, declined to 21.20 per cent in the quarter under review, compared to 22.86 per cent in Q3 FY24.

 

Its annualised premium equivalent (APE) rose by 27.8 per cent Y-o-Y to Rs 2,438 crore. APE is the sum of annualised first-year regular premiums and 10 per cent weighted single premiums and single premium top-ups. Net premium income grew by 23.4 per cent Y-o-Y to Rs 12,261.37 crore.  ALSO READ: PNB Housing Finance Q3FY25 results: Net profit rises 43% to Rs 483 cr

 

In Q3 FY25, the solvency ratio of ICICI Prudential Life stood at 211.8 per cent, compared to 196.5 per cent in the same period last year.

 

“During the quarter, we raised subordinated debt of Rs 14 billion, thereby strengthening our solvency. Recently, the company approved a proposal to invest Rs 100 million (Rs 10 crore), not exceeding 10 per cent of the share capital, in Bima Sugam India Federation, one of Irdai’s initiatives to achieve 'Insurance for All' by 2047,” said Anup Bagchi, managing director (MD) and chief executive officer (CEO) of the insurer, during a post-earnings analyst call.

 

The persistency ratio of the insurer for the April–December period of FY25 was 89.8 per cent for the 13th month, compared to 87.4 per cent in the same period last year. Meanwhile, the 61st-month persistency ratio stood at 65.3 per cent for 9M FY25, compared to 65.9 per cent in the year-ago period.