ICICI Prudential Q3 Results Preview: Net profit likely to rise 11% to Rs 245 crore

ICICI Prudential Q3 results preview: Private sector life insurer ICICI Prudential is set to report its financial results for the third quarter of the financial year 2023–24 (Q3 FY24) on Wednesday, January 17. Analysts expect the company to register growth in premium income but also a decline in the value of new business (VNB) margin on a high base a year ago.  

What to expect from ICICI Prudential in Q3? 

According to Zee Business research, ICICI Prudential is likely to report a standalone net profit of Rs 245 crore for the October-December period, translating into an increase of 10.8 per cent compared with the corresponding period a year ago. Zee Business analysts expect the company’s net premium income to rise a year-on-year (YoY) 3.3 per cent to Rs 9,785 crore.

They peg ICICI Prudential’s annual premium equivalent (APE), a measure of sales for insurance businesses, at Rs 1,878 crore for the December quarter, up 3.1 per cent compared with the year-ago period.  

Zee Business analysts expect the company’s new business premium to increase 14.1 per cent to Rs 4,483 crore, and assets under management (AUM) to grow 12.3 per cent to Rs 2.82 lakh crore.  

They estimate ICICI Prudential’s value of new business (VNB) to shrink 14.2 per cent to Rs 530 crore, and the VNB margin to contract by 250 basis points to 29.5 per cent.  

According to the research, the company’s solvency ratio, or the ability of an insurer to meet its long-term financial obligations, is estimated to come in at 205 per cent for the December quarter from 212.2 per cent a year ago. The analysts expect focus on trends in the bancassurance channel. 

ICICI Prudential Q2 Results: Here's how the firm fared in July-September 

ICICI Prudential Life Insurance Company reported a 23 per cent increase in net profit to Rs 244 crore for the quarter ended September despite lower income, as its total income decreased 2.4 per cent to Rs 174.36 crore amid a fall in investment income.  

Its net premium earned for the September quarter stood at Rs 100.2 crore as against Rs 95.8 crore for the year-ago period. Read more on ICICI Prudential Q2 earnings 

ICICI Prudential: Past performance 

ICICI Prudential shares have gained nearly 10 per cent in the last year, underperforming a 20 per cent rise in the headline Nifty50 index though in line with a 10.3 per cent gain in the Nifty Bank gauge. 

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