ICICI Prudential Life's Net Profit Rises 27% In Q4; VNB Jumps 36%

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ICICI Prudential Life Insurance on Thursday reported a 27 per cent growth in net profit in January-March quarter of FY23, aided by a robust growth in value of new business (VNB). Net profit for the quarter stood at Rs 235 crore in Q4FY23, compared to Rs 185 crore in the year ago period. 

Meanwhile, in FY23, net profit of the insurer stood at Rs 2,765 crore, compared to Rs 2,163 crore in FY22. VNB of the insurer increased by 36 per cent to Rs 1,055 crore in the reporting quarter. VNB is a measure of profitability of life insurance companies. 



In FY23, VNB increased to Rs 2765 crore, up 27.8 per cent from the year ago period. The increase in VNB is primarily because of shift in the underlying product mix. The company has doubled its FY19 VNB with a four year CAGR of 20.1 per cent. It has also reported a significant increase in its VNB margins from 28 per cent in FY22 to 32 per cent in FY23. 

Net premium earned by the company was to the tune of Rs 12,629 crore in Q4, compared to Rs 11,359 crore in the year ago period. And, in FY23, net premium of the company stood at Rs 38,560 crore, compared to Rs 36,321 crore. 

The thirteenth month persistency has improved to 86.6 per cent in FY23 from 85.7 per cent. Moreover, solvency has improved to 208.9 per cent at the end of FY23, against the regulatory requirement of 150 per cent. 

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