ICICI Pru Q1 Net Profit Increases 33% To Rs 207 Cr
ICICI Prudential Life Insurance Company, a private sector insurer, recorded a standalone net profit of Rs 206.9 crore on Tuesday, exceeding analysts' expectations and increasing by 32.9 per cent from the same period a year earlier.
The Value of New Business (VNB) stood at Rs 438 crore, accompanied by a VNB margin of 30 per cent for Q1-FY2024, said the company.
Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance said, “Our very purpose of existence is to provide financial security to our customers and their families. We believe we are trustees of the life savings entrusted to us by our customers to achieve their protection, retirement, health and long-term savings goals."
The company attributes its success to a comprehensive suite of products and a need-based selling approach. As a result, the New Business Sum Assured, which reflects the life cover chosen by customers, grew by 8.8 per cent to Rs 2.4 lakh crore during the same period. The retail protection Annualised Premium Equivalent (APE) experienced an impressive year-on-year growth of 61.8 per cent, amounting to Rs 110 crore.
ICICI Prudential's well-diversified distribution network played a significant role in reaching a broader customer base and driving growth. The total APE for the company reached Rs 1461 crore, demonstrating minimal concentration risk from any single distributor. The company's utilization of data analytics and digitalization has also resulted in better customer insights and improved persistency across all customer cohorts. The 13th-month persistency ratio for Q1-FY2024 improved to 86.4 per cent.
Furthermore, the company's robust risk management framework has maintained a track record of zero Non-Performing Assets since its inception. The Assets Under Management (AUM) increased by 15.8 per cent year-on-year, reaching Rs 2.66 lakh crore as of 30 June 2023. This growth reflects the trust placed by customers in the company to help them achieve their long-term financial goals.
To improve the performance across the 4P strategic elements, we have institutionalised a 4D framework comprising data analytics, diversified propositions, digitalisation and depth in partnerships, with a focus on developing a quality business in a risk-calibrated manner, the company said.
