ICICI Prudential Life: Q1 New Business Premium Rises Despite APE Fall
ICICI Prudential Life Insurance reported mixed Q1 results with new business premium growing 6.5% year-over-year to ₹4,012.00 crore, while Annualised Premium Equivalent (APE) decreased by 5% to ₹1,864.00 crore. Retail APE saw a 9.2% decline to ₹1,512.00 crore. The company's share price initially fell but later pared losses after the update.

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ICICI Prudential Life Insurance , one of India's leading private life insurance companies, has reported mixed results for the first quarter, with growth in new business premium but a decline in Annualised Premium Equivalent (APE).
Key Highlights
- New business premium grew 6.5% year-over-year to ₹4,012.00 crore in Q1
- Q1 Annualised Premium Equivalent (APE) decreased by 5% year-over-year to ₹1,864.00 crore
- Retail APE decreased by 9.2% to ₹1,512.00 crore
- Share price initially fell but pared losses after the update
APE Performance
ICICI Prudential Life Insurance experienced a 5% year-over-year decline in its Annualised Premium Equivalent for Q1, with the figure standing at ₹1,864.00 crore. This metric is crucial for insurance companies as it provides insight into the volume of new business generated, combining the total value of regular premium policies and 10% of single premium policies.
Retail APE and New Business Premium
The company's retail APE saw a significant decrease of 9.2%, reaching ₹1,512.00 crore. However, despite the overall decline in APE, ICICI Prudential Life Insurance reported growth in new business premiums. The new business premium for Q1 increased by 6.5% year-over-year, reaching ₹4,012.00 crore.
Market Response
The mixed results had an initial impact on the company's share price, which saw a decline. However, the stock later pared its losses following the update, indicating that investors may have found some positive aspects in the overall performance.
Industry Context
The decline in APE could be indicative of broader challenges in the life insurance sector or specific headwinds faced by ICICI Prudential Life Insurance. Factors such as economic conditions, regulatory changes, or shifts in consumer behavior might have contributed to this performance.
While the decrease in APE suggests challenges in new business acquisition, the growth in new business premiums provides a positive aspect to the company's performance. It's important to note that quarterly figures can be influenced by various factors, and investors and analysts typically look at longer-term trends to assess the company's overall performance and market position in the competitive Indian life insurance industry.
ICICI Prudential Life Insurance continues to be a significant player in the private life insurance sector. The company's ability to navigate market challenges and adapt to changing consumer needs will be crucial for its future growth and performance.
Historical Stock Returns for ICICI Prudential Life Insurance
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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-1.07% | +5.18% | +5.57% | +4.42% | +1.86% | +61.23% |