Private life insurer ICICI Prudential Life Insurance posted a consolidated net loss of Rs 185.29 crore for the June quarter (Q1) on COVID-19 claims and provisions.
The insurer had posted consolidated net profit of Rs 286.86 crore in the year-ago period.
Due to COVID-19 claims, the insurer is carrying Rs 498.29 crore as provisions for such claims at the end of the June quarter.
In its investor presentation, the insurer said that it had Rs 1,119 crore of COVID-19 claims in Q1. Net of reinsurance the claims were Rs 500 crore.
The insurer said in its investor presentation that the Q1FY22 net claims plus provisions held at June 2021 covers five times the net claims in FY21.
On the business side, its 13th month persistency ratio improved to 87.6 percent in Q1FY22, up from 84.1 percent for the same period last year.
Assets under Management stood at Rs. 2,231.71 billion at June 30, 2021, a year-on-year (YoY) growth of 31 percent over June 30, 2020.
The value of new business (VNB) grew by 78 percent YoY to Rs 358 crore in Q1 FY22.
The insurer said that the growth in VNB has been driven by a resilient business model, innovative product offerings and diversified distribution and product mix.
VNB is the present value of expected future earnings from new policies written during a specified period and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.
N S Kannan, MD & CEO, ICICI Prudential Life Insurance said that the new business premium grew by 71 percent year-on-year to Rs 2,559 crore.
“The VNB margin increased from 24.4 percent for Q1FY21 to 29.4 percent for Q1FY22. With this strong growth momentum along with our well-diversified product and distribution mix, we believe we are well positioned to achieve our stated objective of doubling our FY19 VNB by FY23,” he added.
The insurer’s annualised premium equivalent (APE) stood at Rs 1,219 crore for Q1FY22, showing a 48 percent YoY growth. Here, the protection APE grew by 26 percent YoY to Rs 270 crore.
APE is the sum of annualised first year premiums on regular premium policies, and 10 percent of single premiums, written by the Company during any period from new retail and group customers.