ICICI Pru Life Q3 Results: Net profit falls 29% YoY, operating expenses up sharply

ICICI Prudential Life Insurance Company on Tuesday reported 29% year-on-year (YoY) fall in net profit for the quarter ended December to Rs 220.63 crore.

The net premium income for the quarter rose 4.3% on-year to Rs 9,465 crore. The first year gross premium income for the insurer declined 11% on-year to Rs 1,378 crore, while single premium income increased 12.6% to Rs 2,649 crore.

The net income from investments surged over 10-fold on year to Rs 7,722 crore. Net commission in the quarter fell by 7% on-year to Rs Rs 391.3 crore.

The private sector life insurer saw operating expenses rise sharply during the quarter. Advertising and promotional expenses surged 41.4% YoY to Rs Rs 332.3 crore.

The expense ratio, excluding commission, was 15.2% for the nine months ended December, compared to 12% in the same period a year ago.

The insurer continued to improve its persistency ratio. Persistency ratio was 86.1% in the eight months to the current financial year, compared to 84.6% in FY22.

The persistency ratio is the number of total policies that an insurer has to the policies that are renewed or in force.

The insurer’s solvency ratio stood at 212.2% as of December 31. Solvency ratio measures an insurance company's cash flow in comparison to the amount it owes as total life cover.

Value of new business growth in the nine months ended December increased 23.2% on year to Rs 1,710 crore.

Annualised premium equivalent increased 4.2% on year in the nine-months ended December to Rs 5,341 crore.

Annual premium equivalent is a measure used to compare life insurance revenue by normalising the policy premiums into the equivalent of regular annual payments.

The insurer’s total assets under management stood at Rs 2.52 lakh crore as on December 31.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)