For Q1-FY2023, the life insurer has registered a 31.6% growth in its Value of New Business (VNB), a measure of profitability of a life insurer. The VNB of the company stood at Rs 471 crore with a VNB margin of 31%

Mumbai:

ICICI Prudential Life Insurance, the fourth largest life insurer in the country has recorded a profit after tax Rs 156 crore in Q1FY2023 as compared to a loss of Rs 186 crore in Q1-FY2022.

For Q1-FY2023, the life insurer has registered a 31.6% growth in its Value of New Business (VNB), a measure of profitability of a life insurer. The VNB of the company stood at Rs 471 crore with a VNB margin of 31%.

Net premium earned (gross premium less reinsurance premium) by the company increased by 4.3% from Rs 6602 crore in Q1-FY2022 to Rs 6884 crore in Q1-FY2023.

Claims and benefit payouts (net of reinsurance) decreased by 2.8% from Rs 5668 crore in Q1- FY2022 to Rs 5512 crore in Q1-FY2023 primarily on account of decrease in death claims offset in part by increase in surrender/withdrawal.

N S Kannan, MD & CEO, ICICI Prudential Life Insurance said, “The VNB for the quarter was Rs 471 crore, a strong year-on-year growth of 31.6%. This was driven by a robust 24.7% growth in APE. We are on track to achieve our aspiration of doubling the FY2019 VNB in this fiscal. With a solvency ratio of 203.6%, which is well above the regulatory requirement, we are well positioned to capitalise on this opportunity.”

The death claims, net of amount ceded in reinsurance, declined by 50.6% from 10.68 billion in Q1-FY2022 to Rs 527 crore in Q1-FY2023 primarily on account of decline in COVID-19 related death claims.

The company had COVID-19 related death claims (net of reinsurance) of Rs 17 crore in Q1-FY2023 ( Rs 500 crore in Q1-FY2022).

The life insurer’s total investment income decreased from Rs 9609 crore in Q1-FY2022 to (Rs 8496 crore in Q1-FY2023.

The insurer’s investment income under unit-linked decreased from Rs 7751 crore in Q1-FY2022 to Rs 9888 crore in Q1-FY2023. Investment income under unit-linked is directly offset by change in valuation of policyholder liabilities.

Decrease in investment income is primarily on account of decrease in market value of the securities held. Income under other than unit-linked decreased from Rs 1858 crore in Q1-FY2022 to Rs 1392 crore in Q1-FY2023 primarily on account of decrease in profit on sale of investments offset in part by an increase in interest income.

Total expenses (including commission) of the life insurer increased by 16.1% from Rs 1215 crore in Q1-FY2022 to Rs 1411 crore in Q1-FY2023.

The insurer’s 13th month ratio, which is representative of the quality of business, stood at 85.5% for Q1-FY2023.

The life insurer has grown its AUM(asset under management) by three per cent to Rs 2.30 trillion in Q1 fy23 as against Rs 2.23 trillion in the corresponding period of FY22.