ICICI Prudential Life Insurance Surges As New Business Grows 27%

ICICI Prudential Life Insurance Share Price: The stock rallied on the back of strong growth the business despite challenges posed by the COVID-19 pandemic.

ICICI Prudential Life Insurance Surges As New Business Grows 27%

ICICI Prudential Life shares traded 7.25 per cent higher at Rs 485

Highlights

  • ICICI Prudential Life Insurance share price rose as much as 11.44%
  • ICICI Prudential Life Insurance reported profit of Rs 62.51 crore in Q4
  • ICICI Prudential Life Insurance posted growth despite Covid-19

Shares of leading life insurance services provider - ICICI Prudential Life Insurance - rose as much as 11.44 per cent to hit an intraday high of Rs 504 a day after the company reported its March quarter earnings. ICICI Prudential Life Insurance's net profit fell to Rs 62.51 crore from Rs 178 crore. However, the stock rallied on the back of strong growth the business despite challenges posed by the COVID-19 pandemic. 

"Despite the challenges posed by the pandemic, ICICI Prudential Life Insurance posted a strong growth in the quarter ended March 31, 2021. New business Annualised Premium Equivalent (APE) grew 27 per cent year-on-year in Q4-FY2021 to Rs 2,509 crore, on the back of 108 per cent year-on-year growth in March 2021 to Rs 1,101 crore," ICICI Prudential Life Insurance said in a press release. 

The value of new business (VNB) for the quarter grew by 26 per cent year-on-year to Rs 591 crore. VNB for FY2021 stood at Rs 1,621crore with a margin of 25.1 per cent, up from 21.7 per cent for FY2020, ICICI Prudential said. 

“Despite the disruptions caused by Covid-19, we were able to demonstrate resilience in our operations. In this quarter, APE grew by 27 per cent year-on-year with the month of March posting the best ever monthly sales for the Company in any year since inception," N S Kannan, MD & CEO, ICICI Prudential Life Insurance, said in a statement. 

New business premium grew by 23 per cent year-on-year in Q4-FY2021 to end the quarter at Rs 5,133 crore, resulting in new business premium for FY2021 at Rs 13,032 crore. The annuity business registered a robust growth of 213 per cent from Rs 346 billion in Q4-FY2020 to Rs 1,083 crore of new business received premium in Q4-FY2021; resulting in new business premium of Rs 22.92 billion for this segment in FY2021.  

The persistency ratios have seen improvements in almost all cohorts of persistency, specifically in the 13th month. Assets under Management grew by 40 per cent from Rs 1,529.68 crore at March 31, 2020 to Rs 2,142.18 crore at March 31, 2021, ICICI Prudential added. 

As of 2:32 pm, ICICI Prudential Life shares traded 7.25 per cent higher at Rs 485, outperforming the Sensex which was down 0.42 per cent.