ICICI Pru Life Q4FY23 PAT up 25.96% at Rs235cr despite investment losses
ICICI Pru Life reported -16.9% fall in total revenues for the March 2023 quarter on consolidated basis at Rs11,500cr. For FY23 overall, the company reported value of new business (VNB) of Rs2,765 crore, doubling from the FY19 levels. The YOY VNB growth has improved sharply from just 3.3% in 2019 to 27.8% in FY23. The VNB margins are also sharply higher from 17% to 32% over the last 4 years.
In terms of its distribution mix, FY23 has seen substantial contribution of above 15% from key channels like bancassurance, partnership distribution, group and agency. Even in terms of the product mix, FY23 has seen 36% from linked products, 37% from non-linked products and 17% from protection products. With 97.3% in AAA rated sovereign debt, its funds also enjoy high levels of credit quality.
Financial highlights for Mar-23 compared yoy and sequentially
| ICICI Pru Life | |||||
| Rs in Crore | Mar-23 | Mar-22 | YOY | Dec-22 | QOQ |
| Revenues | ₹ 11,500 | ₹ 13,846 | -16.94% | ₹ 17,535 | -34.42% |
| Net Profits | ₹ 235 | ₹ 187 | 25.89% | ₹ 222 | 6.18% |
| Diluted EPS | ₹ 1.63 | ₹ 1.29 | ₹ 1.54 | ||
| Net Margins | 2.05% | 1.35% | 1.26% | ||
| Solvency Ratio | 2.09 | 2.05 | 2.12 | ||
| Expense Mgmt Ratio | 17.90% | 15.80% | 14.70% | ||
| Policyholder Liability Ratio | 2367.50% | 2498.70% | 2378.50% |
Consolidated Profit after tax (PAT) for March 2023 quarter was up 25.9% at Rs235cr despite negative investment income in the quarter. Net margins have improved sharply in the latest quarter compared to the year ago quarter and also to the sequential quarter. The Average Premium Equivalent (APE) for FY23 at Rs8,640 crore was 11.7% higher than in FY22. Overall embedded value (EV) for the year is 12.7% higher on yoy basis.