ICICI Prudential Life Insurance reported a 22.43 percent increase in net profit to Rs 244.25 crore in the quarter ended September 30, 2023, compared to Rs 200 crore on September 30, 2022. The improvement in profitability was supported by a slight increase in net premium income.
The company’s net premium income rose to Rs 10,022 crore, up almost 5 per cent from Rs 9,582 crore in the year-ago period.
Transfer funds from shareholder accounts stood at Rs 513.73 crore in the second quarter, compared to Rs 465.70 crore in the same period a year ago.
The commission paid to agents and brokers rose to Rs 771 crore during the period under review, compared to Rs 413 crore in the same period of the previous year. Commission expenses increased by 60.5 percent from Rs7.19 billion in H1FY23 to Rs11.54 billion in H1FY24.
The insurer’s total Annualized Premium Equivalent (APE) stood at Rs 2,062 crore in the quarter under review, slightly higher than the Rs 1,999 crore recorded in the same period a year ago. APE fell 41 percent sequentially from Rs 1,461 crore in the first quarter of FY24.
New Business Premium rose to Rs 1,529.04 crore in the July-September quarter, compared to Rs 1,444.39 crore during the same period of the previous fiscal.
The third-largest private life insurer’s value of new business (VNB) fell to Rs 577 crore in the second quarter from Rs 621 crore a year ago.
The VNB margin also came under pressure, as it fell from 31.1 percent a year earlier to 28 percent.
“We are focused on growing the absolute VNB using our 4D framework that includes data analytics, diversified propositions, digitalization and depth in partnerships, to develop quality business in a risk-calibrated manner,” said Anup Bagchi, Managing Director and chief executive officer of ICICI Prudential Life Insurance.