ICICI Prudential Life Insurance Company's consolidated net profit jumped 47.33% to Rs 445.62 crore on a 37.38% surge in total income to Rs 23,129.39 crore in Q2 FY22 over Q2 FY21.
Net premium income jumped 8.33% to Rs 9,286.53 crore in Q2 September 2021 as against Rs 8,572.19 crore in Q2 September 2020. Income from investments (net) surged 70.40% to Rs 13,545.83 crore in Q2 FY22 from Rs 7,949.37 crore in Q2 FY21.
On a standalone basis, ICICI Prudential Life Insurance Company's net profit dropped 56.2% to Rs 259 crore on a 10.11% fall in total income to Rs 35,435 crore in H1 FY2022 over H1 FY2021.
The company's Value of New Business (VNB), a measure of the profitability of a life insurance company, grew 45% year-on-year (Y-o-Y) to Rs 873 crore for H1 FY2022. The New Business Premium (NBP), which highlights business expansion, surged 45% to Rs 6,461 crore for H1 FY2022 vis-vis the same period last year. The Embedded Value (EV) stood at Rs 30,203 crore at 30 September 2021, registering a growth of 17.5% Y-o-Y over 30 September 2020.
The New Business Sum Assured grew 35% year-on-year (Y-o-Y) to Rs 3.37 trillion in H1 FY2022, enabling the company to maintain its leadership amongst private sector life insurers with a market share of 13.2%.
The Annuity business segment witnessed robust growth of 95% year-on-year (Y-o-Y) in H1 FY2022 to Rs 1,347 crore. ICICI Prudential Life Insurance Company has a well-diversified product mix with linked savings at 48%, traditional savings at 30%, protection at 17% and the balance of 5% accounted for by group savings products.
The insurance firm's 13th month persistency ratio improved to 85.1% in H1 FY2022, rising from 82.1% for the same period last year, indicative of the quality of business being underwritten. The company's solvency ratio stood at 199.9% on 30 September 2021, well above the regulatory requirement of 150%.
The Assets Under Management (AuM) stood at Rs 2,370.87 billion at 30 September 2021, a growth of 31% over 30 September 2020. The company had a debt-equity mix of 52%:48% at 30 September 2021. 97% of the debt investments are in AAA rated and government bonds. Meanwhile, the company's net worth stood at Rs 8,755 crore as on 30 September 2021.
N S Kannan, the managing director (MD) and chief executive officer (CEO) of ICICI Prudential Life Insurance Company, said, "The improvement in the pandemic situation with each passing month, increased consumer awareness on the need for life insurance and our suite of customer-centric products have enabled us to grow new business by 62% sequentially this quarter. Significantly, we posted our best ever September on monthly sales for any year since inception, aided by our well-diversified product and distribution channel mix. Our New Business Sum Assured grew by 35% year-on-year to Rs 3.37 trillion in H1 FY2022 and we continued to be the private sector leader with an overall market share of 13.2%. As a result, our absolute VNB grew by 45% year-on-year to Rs 8.73 billion for H1 FY2022, demonstrating our progress towards achieving our stated objective of doubling our FY2019 VNB by FY2023."
Kannan further added, "As a caring and responsible organisation we settled all genuine claims quickly to ensure customers and their families had the required financial support in their hour of need. I am also delighted to share that we have received two significant awards 'Innovation during COVID-19' and 'Claims & Customer Service Excellence' from the Federation of Indian Chambers of Commerce and Industry (FICCI), a testimony to our efforts around innovation and customer-centricity."
The scrip slipped 4.20% to Rs 632.40 on BSE. ICICI Prudential Life is promoted by ICICI Bank and Prudential Corporation Holdings, headquartered in United Kingdom. The company offers and array of products in the protection and savings category which match the different life stage requirements of customers, enabling them to provide a financial safety net to their families as well as achieve their long term financial goals.
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