However, the company reported good overall numbers, including a 71% growth in the key new business premium value metric.

ICICI Prudential Life opened the profit season for the life insurance industry on Tuesday with massive claims of Rs 500 crore due to the coronavirus pandemic, resulting in a net loss of Rs 186 crore for the June quarter .

However, the company reported good overall numbers, including a 71% growth in the key new business premium value metric.

The second-largest private-sector life insurer had recorded a net profit of Rs 288 crore over the period last year and Rs 64 crore sequentially, the company said.

The premium on new business increased by 71% in one year to reach Rs 2,559 crore, while the sum of new business insured increased by 89% in one year to reach Rs 1.77 crore, reflecting the strong momentum growth of the company during the report. trimester.

The company achieved the market leading position in terms of new insured business with a market share of 14.7%, compared to 12.5% ​​year-on-year, including above the industry giant LIC, CEO and Managing Director NS Kannan told PTI.

Regarding massive pandemic claims, Kannan said the company has a gross claim of Rs 1,100 crore out of 5,000 policyholders, resulting in net claims of Rs 500 crore (the rest of the claims being paid by reinsurers). That’s 2.5 times what it paid over the last year – the net only paid 2,000 people Rs 200 crore.

Kannan further said that all net claims of Rs 500 crore had not yet been paid, but refused to share the exact amount settled, saying they had a policy of setting aside funds for the whole. complaints filed.

As a result, he set aside another Rs 500 crore for possible future claims, bringing the overall COVID-19 provisions for the current fiscal year to Rs 1,000 crore, he said.

However, citing the higher provision despite a massive drop in claims from mid-June, Kannan headed for better days ahead.

“We are not seeing a recall of higher claims in the first trimester for three reasons – rising vaccination levels as 40 crore of the over 90 crore adults received the first dose, dramatically decreasing the possibility of a third wave; a sharp drop in new cases as well as reported claims since mid-June; and higher provisions to avoid any future shock coupled with the even higher solvency ratio of 190%, preparing us well for better days “, did he declare.

“After all, we are a life insurer and we cannot be guided by profits and losses alone at times like this,” he added.

On the other numbers, he said the margin on the value of his new corporate bonus (VNB) increased by 500 basis points to 29.4%, while the annualized premium equivalent increased by 41 % to reach 1,219 crore rupees.

The protection portfolio reached 26% to Rs 270 crore, constituting 22% of the overall premium income. The company has been focusing on the protection portfolio since 2019 as part of its 2023 growth strategy.

Highlighting another key growth indicator, he said the key 13-month persistence level had improved significantly from 84.4% to 87.4%. The second year premium payment is important because it shows that the policy has not been mis-sold.

His new insured business sum increased 89% year-on-year to Rs 1.77 lakh crore.

The contribution of tied savings products amounted to 44%, traditional savings products to 29% and protection products to 22% in the first quarter, the balance coming from group savings products. he declares.

Assets under management stood at Rs 2.23 lakh crore, a growth of 31% year-on-year. During the quarter, equity assets under management crossed the Rs 1 lakh crore mark, he said.

Kannan said VNB’s growth was driven by a resilient business model, innovative product offerings, and diverse distribution and product line.

Investment income increased from Rs 7,402 crore to Rs 9,609 crore, reflecting the market recovery.

ICICI Prudential stock lost 3.7% to Rs 603 on BSE, while benchmark Sensex lost 0.7% due to concerns over the pandemic.