ICICI Prudential Life Reports Impressive 43% Jump in Q3 Profits, Surpassing Market Expectations
In a significant development for the insurance sector, ICICI Prudential Life Insurance has announced outstanding financial results for the third quarter of FY 2024-25, with net profits soaring to Rs 326 crore, marking a substantial 43% increase from the previous year's Rs 227.47 crore.
Key Financial Highlights
The company's performance notably exceeded market projections, which had anticipated a more modest 13.52% increase to Rs 257.7 crore. The insurer demonstrated robust growth in its net premium income, which reached Rs 12,261.37 crore, representing a significant 24% increase from Rs 9,929 crore in the corresponding quarter of the previous year.
Strengthened Financial Position
The company's financial stability has shown marked improvement, with the solvency ratio strengthening to 211.8% from 196.5% year-over-year. This enhancement in the solvency ratio indicates the company's strong capability to meet its long-term financial obligations.
Growth in Key Performance Metrics
The Annualised Premium Equivalent (APE) demonstrated impressive growth, rising by 27.2% year-on-year to reach Rs 6,905 crore in 9MFY25, up from Rs 5,430 crore in 9MFY24. This growth was supported by a 14.4% increase in policy issuance, reflecting strong customer confidence and market penetration.
Value Creation and Business Performance
The Value of New Business (VNB) showed positive momentum, increasing by 8.5% year-on-year to reach Rs 1,575 crore in 9M FY25, compared to Rs 1,451 crore in the previous year. The VNB margin stood at a healthy 22.8%, indicating efficient value creation from new business.
Diverse Product Portfolio
ICICI Prudential Life maintains a well-balanced product mix in its 9MFY25 APE contribution: - Linked products: 50.8% - Non-linked products: 17.5% - Protection plans: 16.9% - Annuities: 8.9% - Group funds: 6%
Customer Retention Success
The company's strong focus on customer satisfaction is reflected in its impressive 13th-month persistency rate of 89.8% in 9MFY25, demonstrating high customer loyalty and effective service delivery.
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