ICICI Pru Life posts 3% rise in Q3 net profit
net profit to ₹227 crore for the third quarter ended December 2023. The insurer reported a net profit of ₹220 crore in the year-ago period.
Net premium income was up 5% year-on-year to ₹9,928 crore mainly due to growth in first-year premium.
For the nine-month period, the annualised premium equivalent, a measure of life insurance business computed as a sum of annualised first-year premium and 10% of single premiums, grew by 1.7% to ₹5,430 crore.
The company saw an increase in expenses, especially commissions, which resulted in the expense of management ratio moving up to 18.3% during the quarter from 14.7% a year ago.
Commissions paid including rewards and compensation to agents, brokers and intermediaries increased to ₹1,000 crore during the quarter from ₹391 crore in the year-ago period.
The company's solvency ratio fell to 196% from 212%.
Persistency or the number of policies saw some improvement. While the insurer saw the 13th-month persistency remain flat, while the 61st-month persistency improved to 51.3% during the quarter from 45.9% a year ago.
For the nine-month period, the value of new business (VNB), which is the present value of all future profits to shareholders, fell 15% to ₹1,451 crore.
