ICICI Prudential Life net profit falls 26% in Q4
ICICI Prudential Life Insurance reported a 26% decline in net profit at ₹174 crore during the fourth quarter.
During the same period last year, the company reported a net profit of ₹235 crore.
The value of new business (VNB) declined 26.4% to ₹776 crore versus ₹1,055 crore in the corresponding quarter previous year. The company reported a 17% growth in net premium income to ₹14,788 crore against ₹12,629 crore in Q4FY23.
VNB margin for the year declined to 24.6% from 32% on account of a shift in the underlying product mix toward unit-linked insurance plans and par products from non-par business and decline in group term business and a higher expense ratio for the current year.
The contribution of linked business stood at 43.2%, non-linked at 25.8%, protection at 16.9%, annuity at 10.5%, and group funds at 3.5%.
«We have been strengthening our well-diversified distribution network, designing innovative products and processes and leveraging data analytics and other technology solutions to simplify the business,» said Anup Bagchi, CEO of ICICI Prudential Life Insurance.
While the insurer saw improvement in persistence during the 13th month which rose to 89% from 86.6%, 61st month persistency declined to 64.4% from 65.7%. Solvency margin stood at 191.8% in Q4 compared to 208.9% a year ago.
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