Q3 FY22 Results: ICICI Prudential Life Insurance
One of the leading life insurance providers, ICICI Prudential Life Insurance reported its December quarter FY22 numbers.
The company reported a dismal profit figure where the PAT fell 30% sequentially to Rs.312 crores in Q3 FY22 compared to Rs.445.62 crores in Q2 FY22. Even on a 9-month basis, the PAT fell by 36.5% compared to the PAT reported in the April-December period last year. The fall in PAT can be attributed to the increased costs that the company experienced. The expenses of management increased to Rs.1258 crores in Q3 FY22 compared to Rs.1087 crores a year ago. The expenses increased by 25% amounting to Rs.3505 crores in 9M FY22 compared to Rs.2804 crores in 9M FY21.
On a yearly basis, though, the PAT grew marginally. It was up 2.5% from Rs.304.3 crores in Q3 FY21.
The Value of New Business (VNB) grew 35% YoY to amount to Rs.1388 crores in 9M FY22 compared to Rs.1030 crores in 9M FY21. The VNB margin also improved by 110 basis points YoY in the same period to stand at 27.1%.
Despite the fall in PAT, the company registered growth in premium collections in the October-December 2021 quarter. The New Business Premium (NBP) grew by 30% YoY from Rs.7899 crores in 9M FY21 to Rs.10,248 crores in 9M FY22. The Annualized Premium Equivalent (APE), on the other hand, also jumped 30% YoY from Rs.3954 crores in 9M FY21 to Rs.5125 crores in 9M FY22.
The company’s 13th-month persistence, an important aspect in measuring how many policies are being renewed every year, improved. The persistency ratio jumped by 210 basis points YoY from 82.7% to 84.8% in 9M FY22. The AUM also saw a growth of 16% YoY as it increased from Rs.2048.72 billion to Rs.2375.60 billion.
When the market closed on 18th January 2022, shares of ICICI Prudential Life closed at Rs.608 apiece after a fall of 1.24% on an intraday basis.
Hits
- 2.5% YoY in PAT, from Rs.304.3 crores to Rs.312 crores
- 35% YoY jump in the Value of New Business, from Rs.1030 crores to Rs.1388 crores
- Improvement in the VNB margin by 110 bps on an annual basis, from 26% to 27.1%
- 30% YoY growth in New Business Premium, from Rs.7899 crores to Rs.10248 crores
- 30% YoY jump in the Annualized Premium Equivalent (APE), from Rs.3954 crores to Rs.5125 crores
- 210 bps jump in 13th month persistency on a yearly basis, from 82.7% to 84.8%
- 16% YoY jump in the AUM, from Rs.2049 billion to Rs.2376 billion
Misses
- 30% QoQ fall in PAT, from Rs.446 crores to Rs.312 crores
- 36.5% YoY fall in PAT between 9M FY21 and 9M FY22
- 25% YoY jump in total expenses, from Rs.2804 crores in 9M FY21 to Rs.3505 crores in 9M FY22
- Annual fall in the solvency ratio, from 226.1% in 9M FY21 to 202.2% in 9M FY22
Segment-wise performance
Here’s how the different product segments of the company performed during the 9-month period ending on 31st December 2021 –
- 33.9% jump in retail traditional APE – from Rs.1127 crores to Rs.1509 crores
- 21.8% jump in protection APE – from Rs.703 crores to Rs.856 crores
- The new business premium for annuity grew by 75.3%, from Rs.1210 crores to Rs.2121 crores
Other things to know
- The company reported a net worth of Rs.9086 crores as of 31st December 2021
- Over the 9-month period from April to December 2021, the claim and benefit pay-out increased 49.1%, from Rs.14323 crores to Rs.21355 crores. Out of this, COVID claims amounted to Rs.2045 crores
- The company made a provision of Rs.203 crores for future claims due to COVID
- The market share of the company was 7.4% in 9M FY22
To read the RA disclaimer, please click here.