Net premium income during the first quarter rose by a marginal 2% year-on-year (YoY) to Rs 7,020 crore. It was Rs 6,884 crore in the corresponding quarter of last year.
The value of the new business (VNB), which represents the present value of future profits, fell 7% YoY to Rs 438 crore with a VNB margin of 30% for the quarter under review.
“With customer-centricity at the core, we will continue to focus on growing the absolute VNB, through the 4P strategy comprising premium growth, protection focus, persistency improvement, and productivity enhancement,” the company said in a statement.
The new business sum assured, an indicator of the life cover opted for by customers, jumped 9% to Rs 2.4 lakh crore in the June quarter.
During the same period, the retail protection annualised premium equivalent (APE) registered a strong YoY growth of 62% to Rs 110 crore.
The total APE for the company stood at Rs 1461 crore with minimal concentration risk from any single distributor.The insurer’s 13th-month persistency ratio for the first quarter improved to 86.4%. The assets under management (AUM) grew 16% YoY to Rs 2.66 lakh crore as of June 2023.
New business premium during the first quarter came in at Rs 3,051 crore.
The solvency ratio was 203.4% in the reporting quarter against regulatory requirement of 150%.
The company said it continues to maintain a well-balanced product mix with the share of linked savings, non-linked savings, protection, annuity and group savings accounting for 38.8%, 27.7%, 23.5%, 6.2% and 3.8% of APE respectively in the reporting quarter.
The total investment income increased from a loss of Rs 8,496 crore in the first quarter of previous year to a gain of Rs 16,327 crore in the first quarter of FY24.
Meanwhile, investment income under unit-linked increased from a loss of Rs 9,888 crore in Q1-FY23 to a gain of Rs 14,159 crore in Q1-FY24, primarily due to increase in the market value of the securities held coupled with increase in profits on sale of investments.
On Tuesday, the company’s shares were flat in afternoon trade at Rs 582.8 on NSE.
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