ICICI Prudential Life Insurance saw its shares surge over 7% in Wednesday’s trading session following the release of its first-quarter results for FY25. The company reported an 8.7% year-on-year increase in net profit, reaching ₹225.4 crore, attributed to rising expenses.
The company’s expenses increased by 32.8%, amounting to ₹198.53 crore in Q1 FY25, compared to ₹149.47 crore in the same period last year. Despite the rise in costs, ICICI Prudential Life Insurance’s new business premiums grew significantly, showing a 23.5% year-on-year increase to ₹3,769 crore. The annualized premium equivalent (APE), which is a key measure in the insurance industry, rose by 34.4% year-on-year to ₹1,963 crore.
However, there was a contraction in the company’s value of new business (VNB) margin, which dropped to 24% in Q1 FY25 from 30% in the previous year. The VNB margin is an important indicator of profitability for insurance companies, reflecting the percentage of profit expected from new business.
As of 11:50 AM the shares were trading 7.46% higher at ₹686.05 on NSE.
