ICICI Prudential Life Q2 revenues double, but net profits flat at Rs302cr
ICICI Prudential Life reported an increase of 105.05% in top line revenues for the Sep-20 quarter at Rs16,835cr. The net profits for the quarter ended Sep-20 were almost flat at the same level of Rs302cr.
ICICI Prudential Life reported an increase of 105.05% in top line revenues for the Sep-20 quarter at Rs16,835cr. The net profits for the quarter ended Sep-20 were almost flat at the same level of Rs302cr. The impact on profits was more due to change in actuarial liability that has gone up almost 4 times on a yoy basis, putting pressure on the bottom line.
The net profit margin of ICICI Prudential Life almost halved on a yoy basis at 1.80% and even the solvency ratio was slightly lower at 2.06, when compared on a yoy basis. While the Policyholder Liability ratio was almost flat, the sharp fall in expense management ratio by nearly 270 basis points is a favourable feature.
Financial highlights for Sep-20 compared yoy and sequentially
|Particulars||Sep-20 Quarter||Growth (yoy)||Growth (qoq)|
|Key Ratios||Sep-20 Quarter||Sep-19 Quarter||Jun-20 Quarter|
|Net Profit Margin||1.80%||3.68%||1.51%|
|Expense Mgmt Ratio||11.30%||14.00%||12.20%|
|Policyholder liab. Ratio||2104.40%||2169.80%||2077.60%|
Key takeaways from the Sep-20 quarter results
The value of new business in the first half of the FY21 was 15% lower at Rs602cr as compared to Rs709cr in the comparable first half of FY20. This also resulted in a 13.5% fall in the new business premium.
Despite the lower new business, the value of new business (VNB) margin is up over 500 bps at 26.3% on account of increase in protection mix and the growth in non linked savings schemes.