ICICI Prudential Q4 Results: APE drops 3% to ₹3,502 crore, ₹10k-mark crossed in FY25; dividend declared

ICICI Prudential Life Insurance Company Ltd, on Tuesday, April 15, 2025, reported a two-fold rise in its net profit to ₹386 crore for the quarter ended March 31, mainly because of lower expenses. The private sector insurer reported a net profit of ₹174 crore in the fourth quarter of 2023-24.

ICICI Prudential said in a regulatory filing that the insurer's net premium income rose 10.6 per cent to ₹16,369 crore in the March quarter, compared to ₹14,788 crore in the year-ago period. Expenses fell to ₹15,314 crore in the fourth quarter of FY25 from ₹22,352 crore in the year-ago period.

ICICI Prudential Q4 Results: Key Metrics

The reduction in total expenses is due to a change in actuarial liability, which includes movement in funds for future appropriation. It has come down to ₹80 crore against ₹7,045 crore in the same quarter a year ago.

For the full 2024-25 fiscal year, ICICI Prudential Life's net profit rose by 40 per cent to ₹1,189 crore from ₹852 crore earned in the previous financial year. It also announced a dividend of ₹0.85 per share for FY25 with a face value of ₹10 each, compared to ₹0.6 per share a year ago.

It said that with an annual premium equivalent (APE) of ₹10,407 crore for FY2025, the Value of New Business (VNB) margin stood at 22.8 per cent. The insurer's VNB margin movement from FY2024 is primarily due to a shift in the new business profile and assumption changes.

The APE dropped three per cent to ₹3,502 crore. For the first time, the insurer crossed the ₹10,000-crore mark in terms of APE during FY25. Assets under management stood at ₹3.09 lakh crore as of March 31, 2025, compared to ₹2.94 lakh crore at the end of the previous financial year.

The risk management framework enabled it to have a record of zero non-performing assets since its inception. As of March 31, 2025, the solvency ratio was 212.2 per cent, against the requirement of 150 per cent. Shares of ICICI Prudential settled 2.62 per cent higher at ₹567.60 apiece on the BSE.

ICICI Prudential ULIP

Demand for its market or unit-linked insurance plans (ULIP) dropped during the fourth quarter as India's stock markets underwent a sharp correction. In the previous quarters, demand for ULIPs rose consistently as the stock markets traded at record-high levels. ULIPs accounted for 48.3 per cent of the company's overall product mix, down from 50.8 per cent a year earlier.