ICICI Prudential Life Insurance posted a 34.4 percent year-on-year (YoY) drop in its December quarter (Q3) net profit at Rs 296.77 crore. The insurer saw an 84 percent YoY drop in its Q3 net income from investments to Rs 1,047.77 crore.
In a statement, the company said that the net profit decreased primarily on account of higher new business strain resulting from the new business growth of protection and annuity business.
The insurer said that the investment income under unit-linked portfolio is directly offset by a change in valuation of policyholder liabilities and does not directly impact profits
The total assets under management of the company was Rs 1.49 lakh crore at the end of Q3. The insurer’s Value of New Business (VNB) for the first nine months of FY19 (9MFY19) was Rs 910 crore, compared to Rs 767 crore in the year-ago period.
The 13th month persistency stood at 84.1 percent for 9MFY19. The 49th month persistency improved to 63.2 percent in 9MFY19 as compared to 61.1 percent in the year-ago period.
The solvency ratio was 224.3 percent at the end of Q3 against a regulatory requirement of 150 percent.