Profit companies

ICICI Pru Life sees a profit of Rs 156 cr in the first quarter on lower claims and provisions

ICICI Prudential Life Insurance on Saturday reported a net profit of Rs 156 crore in the April to June (Q1) quarter of FY23, compared to a loss of Rs 186 crore in the year period. previous year, helped by a significant drop in claims and provisions due to Covid -19.

The private sector life insurer saw the value of new business (VNB) rise by 32% to Rs 471 crore in the first quarter of FY23 from Rs 358 crore a year ago. The insurer’s annualized premium equivalent (APE) stood at Rs 1,520 crore, up 25% from the same period last year.

The value of new business reflects the additional revenue expected to be generated by new policies issued, while the APE is the sum of the total value of regular or recurring premiums plus 10% of any new single premium written for the financial year .

The new business premium – the earned value of new policies for a given year – of the insurer rose by 24.4% to Rs 3,184 crore over the same period.

The company earned net premiums, which include first year premium, renewal premium and one-time premium, amounting to Rs 6,884 crore, up 4.3% from the premium of Rs 6,601, 85 crore rupees earned a year ago.

The insurer reported a VNB margin, a measure of the profitability of life insurers, of 31%, compared to a margin of 28% in FY22, mainly due to a change in the product mix under -lying. In the corresponding period last year, the VNB margin was 29.94%.

Investment income suffered significantly during the quarter under review due to market volatility.

The insurer paid claims and benefits worth Rs 5,512 crore in Q1FY23, down 2.8% from Rs 5,668 crore in Q1FY22.

Death claims, net of amount ceded in reinsurance, decreased by 50.6% from Rs 1,068 crore in Q1FY22 to Rs 527 crore in Q1FY23, mainly due to lower Covid-related cases -19. The quarter saw Covid-related death claims to the tune of Rs 17 crore.

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