ICICI Bank announces results for Insurance subsidiaries & asset company for Q2 FY10
Mumbai, October 28, 2009:
Insurance subsidiaries
ICICI Prudential Life Insurance Company (ICICI Life) maintained its position
as the largest private sector life insurer based on retail new business
weighted received premium during the half year ended September 30,
2009. ICICI Life’s total premium in Q2-2010 was Rs. 3,634 crore (US$ 756
million). ICICI Life’s renewal premium in Q2-2010 increased by 28%
compared to Q2-2009, reflecting the long term sustainability of the
business. New business annualised premium equivalent (APE) in Q2-2010
was Rs. 1,212 crore (US$ 252 million).
ICICI Life’s unaudited New Business
Profit (NBP) in Q2-2010 was Rs. 233 crore (US$ 48 million). Due to
customer acquisition costs, which are not amortised, and reserving for
actuarial liability, ICICI Life’s statutory accounting results reduced the
consolidated profit after tax of ICICI Bank by Rs. 51 crore (US$ 11 million)
in Q2-20101 (compared to Rs. 228 crore (US$ 47 million) in Q2-2009).
Assets held increased 66% from Rs. 30,107 crore (US$ 6.3 billion) at
September 30, 2008 to Rs. 50,093 crore (US$ 10.4 billion) at September
30, 2009.
ICICI Lombard General Insurance Company (ICICI General) maintained its
leadership in the private sector during the half year ended September 30,
2009. ICICI General’s premium in Q2-2010 was Rs. 801 crore (US$ 167
million). ICICI General’s profit after tax for Q2-2010 was Rs. 51 crore (US$
11 million).
Securities and asset management
ICICI Prudential Asset Management Company’s profit after tax for Q2-
2010 was Rs. 48 crore (US$ 10 million) compared to Rs. 16 crore (US$ 3
million) in Q2-2009. ICICI Securities’ profit after tax for Q2-2010 was Rs. 38
crore (US$ 8 million) compared to Rs. 10 crore (US$ 2 million) in Q2-2009.
1 Life insurance companies worldwide make accounting losses in initial years due to
business set-up and customer acquisition costs in the initial years and reserving for
actuarial liability. Further, in India, amortization of acquisition costs is not permitted. If
properly priced, life insurance policies are profitable over the life of the policy, but at the
time of sale, there is a loss on account of non-amortized expenses and commissions,
generally termed as new business strain that emerges out of new business written
during the year.
New Business Profit (NBP) is an alternate measure of the underlying
business profitability (as opposed to the statutory profit or loss) and relevant in the case
of companies in their growth phase. NBP is the present value of the profits of the new
business written during the year. It is based on standard economic and non-economic
assumptions including risk discount rates, investment returns, mortality, expenses and
persistency assumptions. Disclosure on economic assumptions is available in the annual
report for the year ended March 31, 2009.
1 crore = 10.0 million
US$ amounts represent convenience translations at US$1= Rs. 48.10
Q2 FY10 results for ICICI Bank
(This is a press release from ICICI Bank)
