ICICI Prudential Life dips 3% despite reporting marginal rise in Q3 net profit

ICICI Prudential Life Insurance shares declined 3.5% to Rs 586.25 on the BSE at 09:25 am despite reporting marginal growth in its Q3 results.

The company reported a 2% year-on-year increase in net profit to Rs 311 crore for the December 2021 quarter, on higher policy sales. In the previous fiscal year, the company generated a net profit of Rs 306 crore.

Also Read| Network18 share jumps 1% after reporting highest-ever quarterly revenue in Q3

The company recorded a 20% increase in the value of a new business to Rs 515 crore, with margins increasing to 26.7% in the quarter. It aided the company’s profitability despite a reduced investment income of Rs 734 crore, which was much lower than the year-ago period when it earned Rs 19,491 crore in net profits as the markets were on a roll.

Also Read| Tata Elxsi share surges 3% after profit jumps 43% in Q3

Its total claims/benefits for December 2021 were Rs 7,665 crore, up from Rs 6,817 crore the previous year. So far, the company has paid over Rs 1,200 crore in pandemic claims net of reinsurance. Of this, Rs 984 crore was spent in the first half of the current fiscal year alone, with the remainder spent in FY21.

Also Read| L&T Technology dips 6% despite reporting marginal surge in Q3 net profit

Its overall premium income was Rs 9,344 crore, a slight increase from Rs 9,152 crore, while the premium on reinsurance ceded increased to Rs 270 crore from Rs 181 crore, resulting in a net premium income of Rs 9,074 crore, a marginal increase from Rs 8,971 crore.

Also Read| Bajaj Finance jumps 2% after reporting highest ever quarterly net profit in Q3

The insurer paid out Rs 421 crore in commissions to its agents, up from Rs 386 crore the previous year, while it sold 20% more policies than the previous year, bringing total costs to Rs 1,042 crore, up from Rs 890 crore. However, the overall outlay was substantially lower at Rs 9,527 crore, a dramatic decrease from Rs 28,158 crore the previous year.

Also Read| Trending Stocks: Bajaj Finance, ICICI, L&T, Network18, Tata and others in news today

Its 13th-month persistency ratio increased to 84.8% for the first nine months of the current fiscal year, up from 82.7% the previous year, showing the quality of the business underwritten. Assets under management reached a new high of Rs 2.376 lakh crore, a 16% increase over December 2020.