How did you find the latest quarterly results of ICICI Prudential Life Insurance for Q4?
Answer
Answer
The insurer, ICICI Prudential Life Insurance, saw a 3-fold rise in net profits at Rs.187 crore due to lower accretion of actuarial liabilities. Let us also look at the top line. ICICI Pru Life Insurance reported a fall of -29.5% in top line revenues yoy in the Mar-22 quarter at Rs.13,846 crore. The net premium income was largely stable, but the fall in revenues can be largely attributed to a sharp fall in the investment income for the fourth quarter.
ICICI Pru Life
Rs in Crore
Mar-22
Mar-21
YOY
Dec-21
QOQ
Total Income
₹ 13,846
₹ 19,639
-29.50%
₹ 9,865
40.35%
Net Profit
₹ 187
₹ 63
198.96%
₹ 312
-40.10%
Diluted EPS
₹ 1.29
₹ 0.43
₹ 2.16
Net Margins
1.35%
0.32%
3.16%
Solvency Ratio
2.045
2.168
2.022
Expense Mgmt Ratio
15.80%
11.70%
13.50%
Policy Holder Liability Ratio
2498.70%
2230.50%
2494.20%
For fiscal year FY22, value of new business (VNB), a key metrics for life insurers, was sharply higher at Rs.21.63 billion compared to Rs.16.21 billion in the previous year FY21. In addition, the new business margin for FY22 spiked from 25.1% to 28% compared to FY21. The annual premium equivalent (APE) improved in FY22 to Rs.77.33 billion compared to Rs.64.62 billion in the financial year FY21. Embedded value of ICICI Pru Life grew 8.7% yoy at Rs.316.25 bn.
Margins may not be exactly relevant in this case, but we look at it nevertheless. Net margins for the Mar-22 quarter was 1.35% compared to 0.32% in the year ago period. However, the net margins are meaningfully lower than 3.16% recorded in the sequential Dec-21 quarter. One reason could be that the Expense Management Ratio has gone up sharply in the latest quarter by over 400 bps yoy compared to the year ago Mar-21 quarter.