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) |
|
Total Revenues |
Rs16,835cr |
+105.05% |
-11.66% |
|
Net Profits |
Rs302cr |
+0.21% |
+5.44% |
|
Key Ratios |
Sep-20 Quarter |
Sep-19 Quarter |
Jun-20 Quarter |
|
Diluted EPS |
Rs2.10 |
Rs2.10 |
Rs2.00 |
|
Net Profit Margin |
1.80% |
3.68% |
1.51% |
|
Solvency Ratio |
2.06 |
2.11 |
2.05 |
|
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.
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