ICICI Prudential Life Insurance reported almost flat growth in net profit at ₹287.59 crore in the first quarter of FY21 when compared to ₹284.94 crore a year ago.

However, on a sequential basis, net profit surged by 60 per cent from ₹179.49 crore for the quarter ended March 31, 2020.

The private sector insurer reported a 10.6 per cent decline in net premium income at ₹5,551.07 crore for the quarter ended June 30from ₹6,208.13 crore a year ago.

“The challenges brought about by the pandemic had an impact on new business premium during the quarter, which decreased from ₹2,226 crore in the first quarter of FY20 to ₹1,499 crore during the first quarter of FY21,” said ICICI Prudential Life Insurance in a statement on Tuesday, adding that the annuity new business premium grew 13.1 per cent to ₹216 crore in the first quarter this fiscal.

The value of new business declined by 35 per cent to ₹201 crore in the April to June 2002 quarter against ₹309 crore a year ago.

The 13th and 49th month persistency ratios stood at 84.1 per cent and 66.2 per cent, respectively, at June 30. Assets under management grew by 3.6 per cent to ₹1,70,006 crore at the end of the first quarter in FY21from ₹1,64,024 crore a year ago.

The insurer’s solvency ratio for the quarter stood at 205 per cent.

NS Kannan, Managing Director and CEO, ICICI Prudential Life Insurance, said: “The Covid-19 pandemic has had an impact on the way consumers perceive life insurance, and protection products have, therefore, seen an increased demand. Even with the movement restrictions in the last quarter, the share of protection in our portfolio increased to 26 per cent of Annualised Premium Equivalent. This resulted in an expansion in the value of new business margin from 21 per cent for first quarter last fiscal to 24.4 per cent in the first quarter this fiscal.”

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