Mumbai: ICICI Prudential Life Insurance Tuesday announced a 26% decrease in net profit, amounting to Rs 174 crore for the quarter ending March 31, 2024, down from a net profit of Rs 235 crore reported in the same period last year.
Despite the decline in net profit, the insurer reported a 17% increase in net premium income, reaching Rs 14,788 crore in Q4FY24 compared to Rs 12,629 crore in Q4FY23.
Furthermore, the insurer's Board approved a final dividend of 60 paise per equity share with a face value of Rs 10 each, for distribution to its shareholders.
The solvency ratio of the insurer stood at 191.8% in Q4FY24, down from 208.9% in the year-ago period, indicating that the insurer's available capital exceeds its liabilities.
The solvency ratio compares the insurer's available capital with its liabilities and is used to assess the ability of an insurance company to meet its long-term obligations.
The insurer's annual premium equivalent (APE) increased by 9.5 percent year-on-year, reaching Rs 3,615 crore compared to Rs 3,300 crore in the previous year. APE serves as a metric to gauge the growth of new business sales.
However, the value of new business (VNB) experienced a decline of 26.5 percent, amounting to Rs 776 crore compared to Rs 1,055 crore previously.
The VNB margin also decreased to 21.5 percent from 32 percent. VNB measures the profit margin associated with new business underwritten by a life insurance company.
As of the end of the financial year 2023-24, the insurer's total assets under management reached Rs 2.91 lakh crore, showing an increase from Rs 2.51 lakh crore in the previous period.
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