Page 13 - Insurance Times August 2018
P. 13
Private Life Insurance
News
Reliance Nippon Life In- ICICI Pru Life Insurance Q1 net profit drops 31%
surance June quarter
premium up to Rs 755 Private sector ICICI Prudential Life Insurance registered a 30.5 per cent drop in
crore net profit to Rs. 282 crore in the first quarter
of the current fiscal on account of losses from
Reliance Nippon Life Insurance Com- “higher new business strain” and a base year
pany said impact. Its net profit had grown to ?406 crore
its total in the first quarter of 2017-18.
premium
grew by “There has been a huge base effect post
8 per demonetisation. Our immediate focus is on
cent to reversing the trend,” said NS Kannan, Managing Director and CEO, ICICI Pru-
dential Life Insurance, adding that sequentially the insurer’s market share has
Rs 755 crore in April-June quarter hovered around 11.5 per cent.
compared to the year-ago.
Kannan, who took over at ICIC Prudential Life Insurance in June after its former
The company said it had assets un- chief Sandeep Bakhshi moved to ICICI Bank, said that there has been a growth
der management of Rs 19,335 crore of 36 per cent in the retail weighted received premium (RWRP) in June over
as on June 30 this year, up 11 per May. “Our focus will be on carrying forward this momentum,” he said at the
cent from same period a year ago. first quarter earnings call.
Its renewal premium during the pe-
riod under review rose by 6 per cent “New business strain arises when the premium paid at the commencement of
to Rs 552 crore. a contract is not sufficient to cover the initial expenses, including acquisition
costs and any mathematical reserves that our company needs to set up at that
"Our journey of quality and profit- point,” the insurer said in a release.
ability continues with the rise in per-
sistency as well as NBAP (new busi- Total premium grew by 13 per cent to Rs. 5,518 crore in the quarter ended
ness achieved profit), led by origina- June 30, 2018-19, against Rs. 4,885 crore a year ago. The value of new business
tion control and, systemic process increased by 34.1 per cent to Rs. 244 crore in the first quarter of the fiscal from
enhancements towards customer Rs. 182 crore in the same period last fiscal.
engagement.
However, retail new business premium decreased by 18.1 per cent to Rs. 1,492
"In this path of transformation, digi- crore in the quarter under review, though its group premium more than doubled
tal will continue to play an important to Rs. 401 crore in the same period. The insurer’s market share stood at 11.3
role and our target is to improve the per cent among life insurance companies on a RWRP basis for the quarter un-
qualitative parameters further, and der review.
thereby grow the embedded value,"
said Ashish Vohra, ED & CEO, Reli- Its 13th month persistency ratio remained constant at 85.8 per cent in the first
ance Nippon Life Insurance quarter of the fiscal. It further said that its claims and benefit payouts decreased
by 25.9 per cent to Rs. 2,940 crore in the quarter ended June 30, 2018-19, due
to decrease in surrender claims by Rs. 1,093 crore in the period.
The Insurance Times, August 2018 13
