Shares of ICICI Prudential Life Insurance fell sharply by 8.38% to ₹582.30 in early trade on Wednesday, January 22, following the company’s announcement of its Q3 FY25 financial results. While the insurer reported robust growth in profit and premium income, investor sentiment appeared cautious.
Key Financial Highlights (Q3 FY25):
- Net Profit (PAT): ₹326 crore, a 43% YoY increase from ₹227 crore in Q3 FY24.
- Net Premium Income (NPI): ₹12,261 crore, up 23.48% YoY from ₹9,929 crore.
- Assets Under Management (AUM): ₹3.10 lakh crore, up from ₹2.86 lakh crore a year ago.
- Solvency Ratio: 211.8%, well above the regulatory requirement of 150%.
- Capital Raised: ₹1,400 crore through non-convertible debentures (NCDs) during the quarter.
Nine-Month FY25 Performance:
- Post-Tax Profit: ₹803 crore, up 18.3% YoY.
- Value of New Business (VNB): ₹1,575 crore, a growth of 8.5% YoY.
- VNB Margin: 22.8%.
- Annualized Premium Equivalent (APE): Advanced 27.2% YoY.
Operational Insights:
ICICI Prudential Life delivered industry-leading growth, with a Retail Weighted Received Premium (RWRP) increasing 31.4% YoY in the nine months of FY25. The claim settlement ratio stood at 99.3% for 9M FY25, with an average turnaround time of 1.2 days for non-investigated individual claims.
Despite the strong operational performance, investor concerns about valuation and market conditions contributed to the sharp sell-off in the stock.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
