ICICI Prudential Life Insurance posted a net profit of ₹576 crore for the nine-month period ended December 31, slightly higher than ₹569 crore in the year ago period.

Value of new business, a measure of profitability, grew 23.2 per cent on year to ₹1,710 crore for the nine-month period ended December 31. The VNB margin improved to 32 per cent from 27 per cent.

The new business sum assured grew 34.9 per cent on year to ₹6.9 lakh crore, resulting in the company’s market share on new business sum assured expanding to 14.6 per cent from 12.7 per cent in the year ago period.

Doubling VNB

“We are close to achieving our aspiration of doubling the FY19 VNB by FY23. This consistent track record of healthy compounding of VNB, and near doubling of the VNB margin are a result of our transformative diversification in products, distribution partnerships and customer segments which began in FY2019,” said MD and CEO N S Kannan.

The annualised premium equivalent (APE) for the annuity business grew 56.0 per cent whereas for the protection business was higher by 22.7 per cent. The two segments accounted for almost 50 per cent of the total new business premium in 9MFY23 and offer tremendous growth opportunity, the insurer said in a release.

Persistency ratio

ICICI Prudential Life’s 13th month persistency ratio improved to 86.1 per cent for 9MFY23 from 84.8 per cent a year ago. The 49th month persistency ratio at 66.0 per cent was also better than 63.0 per cent.

AUM of the company stood at ₹2.5 lakh crore at the end of December. The solvency ratio was 212.2 per cent against the regulatory requirement of 150 per cent.