ICICI Pru Life Q4 net profit soars as new business looks up

Mumbai: ICICI Prudential Life Insurance Company's net profit rose 122% during the fourth quarter ended March 31 helped by easing pressure from new business strain. The insurer reported a net profit of ₹386 crore during the quarter against ₹174 crore a year ago. The board declared a final dividend of ₹0.85 per share for FY25.

New business growth was muted, with annualised premium equivalent (APE) slipping 3% YoY to ₹3,502 crore, as demand for unit-linked insurance plans (ULIPs) softened during the quarter. The management said that while linked products saw some weakness, the drop was contained at 3.4% despite market volatility. Meanwhile, group fund and protection businesses recorded growth. Also, the decline in APE is attributed to slowdown in credit life business primarily amid lower loans uptick in micro finance institutions.

Solvency ratio improved to 212% from 191% against the regulatory requirement of 150%. It raised ₹1,400 crore in Q3 FY25 by issuing 10-year subordinated NCDs at 8.03% annual coupon, with a call option available after 5 years and annually thereafter.


Persistency was mixed. The 13th-month ratio ticked up to 89.1% from 89%, indicating steady retention of new customers. However, the 61st-month persistency slipped to 64.1% from 66%.