ICICI Pru Life share price drops nearly 10% despite Q3 net profit increasing by 43% to ₹326 crore

The stock was down 9.61% to ₹574.45 apiece on the National Stock Exchange (NSE) at 9:31 am. Its market capitalisation stood at ₹83,729.08 crore.

On the BSE, the scrip was down 9.69% to 574.30 per share.

In the quarter under review, the net premium income (NPI) surged 23.48% to ₹12,261 crore, compared to ₹9,929 crore in the same quarter a year ago, the company said in a regulatory filing.

The insurer's assets under management (AUM) surged to ₹3.10 lakh crore as of December 31, 2024, up from ₹2.86 lakh crore in the corresponding period last fiscal.

The company's solvency ratio was 211.8% in the reporting quarter against the regulatory requirement of 150%.

During the third quarter, ICICI Pru Life raised additional capital by issuing non-convertible debentures (NCDs) of ₹1,400 crore, further strengthening its solvency.

For the nine-month period of FY25, the company reported an 18.3% year-on-year (YoY) growth in post-tax profit to ₹803 crore. For the same period, the value of new business or VNB posted an increase of 8.5% to ₹1,575 crore, and the VNB margin was 22.8%.

The total annualised premium equivalent (APE) advanced by 27.2% YoY in 9M FY25.

Commenting on earnings, Anup Bagchi, MD and CEO of ICICI Prudential Life Insurance, said, "Our focus on aligning with the customer demand has helped us outperform the industry's premium growth for five consecutive quarters. We have delivered a 31.4% year-on-year Retail Weighted Received Premium (RWRP) growth in 9M-FY2025, on the back of an increase of 14.4% in the number of policies sold."

"Our claim settlement ratio of 99.3% in 9M-FY2025, with an average turnaround time of just 1.2 days for non-investigated individual claims, reflects our commitment to fulfilling the promise made to our customers and their families," he added.