ICICI Pru Q2 results: Net profit up 48% on growth in premium, investment income

MUMBAI: ICICI Prudential Life Insurance Co (IPru Life) reported a 48 per cent rise in net profit in the second quarter ended September 2021 led by growth in premium as well as investment income.

Net profit increased to Rs 446 crore in September 2021 from Rs 302 crore a year ago due to a 70 per cent rise in investment income to Rs 13,546 crore from Rs 7949 crore a year ago. Net premium income after adjusting for reinsurance costs increased 8 per cent to Rs 9287 crore from Rs 8572 crore a year ago.

CEO NS Kannan said the recovery from the pandemic and increased consumer awareness on the need for life insurance has helped IPru Life grow new business by 62 per cent sequentially this quarter.

"We posted our best-ever September on monthly sales for any year since inception. Our new business sum assured grew by 35 per cent year-on-year to Rs 3.37 lakh crore in H1-FY2022," Kannan said adding that the company corners 13.2 per cent market share among private sector life insurers.

The company's value of new business (VNB) grew by 45 per cent year-on-year to Rs 873 crore for the first half of the current fiscal year up from Rs 602 crore in the same period last fiscal.

VNB is a key measure of profitability for life insurance companies used to measure the profitability of the new business written in a period. It is the present value of all future profits to shareholders measured at the time of writing the new business contract.

New Business Premium grew by 45 per cent year-on-year to Rs 6461 crore in the first half of the fiscal led by a 95 per cent year-on-year growth in annuity business with Rs 1347 crore of new business received premium in the period.

The company's product mix includes linked savings at 48 per cent, traditional savings at 30 per cent, protection at 17 per cent and 5 per cent of group savings products.