ICICI Prudential Life Insurance Company Ltd reported a 22.3% year-on-year growth in Value of New Business (VNB) to ₹1,283 crore for the half-year ended September 30, 2026 (H1FY27). The insurer’s VNB margin expanded by 130 basis points to 26.0%, driven primarily by a favorable shift in product mix towards protection business.

The company’s total premium grew 15.3% YoY to ₹24,505 crore, while new business premium rose 25.0% YoY to ₹11,821 crore. This growth was supported by a 10.6% increase in the number of policies sold, reflecting continued expansion of the customer base despite global macroeconomic uncertainty and equity market volatility.

Strategic Shifts and Channel Performance

Management highlighted that the protection mix increased from 19.3% in H1FY26 to 23.4% of Annual Premium Equivalent (APE) in H1FY27. Consequently, the savings business mix moderated to 76.6%. Within the savings segment, the annuity portfolio grew strongly by 50% YoY, while linked business grew 6.6% YoY, facing some softness due to market volatility.

Distribution channels showed varied performance:

• Agency: Grew 3.3% YoY to ₹1,102 crore, with Q2 growth at 4.1% YoY.
• Direct: Grew 10.9% YoY to ₹679 crore.
• Bancassurance: Grew 4.6% YoY, contributing 27.4% to APE.
• Partnership Distribution: Grew 34.1% YoY, contributing 14.8% to APE.
• Group Business: Grew 39.2% YoY, contributing 21.6% to APE.

Outlook and Strategic Priorities

Looking ahead, ICICI Life Insurance expects retail protection growth to decrease from the 40-50% range observed in the first half of FY27 during the second half of the fiscal year. Despite this anticipated moderation in protection volumes, the company continues to prioritize VNB growth with a sustained focus on protection and annuity products.

Financial Metrics and Efficiency

Profit after tax (PAT) grew 26.5% YoY to ₹760 crore. The company maintained strong operational efficiency, with the Cost to Premium ratio (excluding GST) reducing by 30 basis points YoY to 18.3%. Operating expenses, excluding GST and stamp duty, have reduced at a CAGR of 8% over the last three years.

Key balance sheet and operational metrics include:

• Assets Under Management (AUM): ₹3,29,000 crore as on September 30, 2026.
• Solvency Ratio: 229.9%, indicating a strong capital position.
• Claim Settlement Ratio: 99.3%, with an average turnaround time of 1.1 days for non-investigated claims.
• Embedded Value (EV): Grew 12.2% YoY to ₹56,669 crore.

What the Numbers Show

The divergence between the 22.3% VNB growth and the 15.3% total premium growth highlights the company's successful pivot towards higher-margin products. The expansion in VNB margin to 26.0% is not merely a result of volume but is structurally supported by the increase in protection mix from 19.3% to 23.4%. Furthermore, the 50% growth in annuity sales within the savings segment suggests that the company is effectively capturing demand for guaranteed income products in a volatile market environment, balancing the softness in linked insurance products.

Leadership Transition

Anup Bagchi concluded his tenure as MD and CEO during this call. Sidharatha Mishra has been appointed as the new MD and CEO for a five-year tenure beginning October 14, 2026, subject to regulatory approvals. Mishra previously served as the Chief Operating Officer and has over 28 years of experience within the ICICI Group. The company was recently renamed ICICI Life Insurance Limited to strengthen its brand identity.

ICICI Life Insurance Limited received a rectification order from the Assistant Commissioner of Income Tax, Mumbai, on October 19, 2026, regarding Assessment Year 2023. The order demands an incremental tax and interest liability totaling ₹591 crore.

The communication was issued under Section 154 of the Income Tax Act, 1961. It follows an earlier intimation dated September 27, 2024, which pertained to an order under Section 143(3) of the same Act. The company disclosed this development to the BSE and NSE under Regulation 30 of the SEBI Listing Regulations.

Financial implications

The rectification order seeks additional tax and interest payments. The company stated that the total financial implication amounts to ₹591,41,87,210. This figure comprises the original demand plus the incremental amounts specified in the new order.

The company asserted that there is no adverse material impact on its financial operations due to this order. No penalty or restriction was imposed by the authority.

Company response

ICICI Life Insurance has filed an appeal against the said order before the appropriate authority. The disclosure clarifies that the entity is formerly known as ICICI Prudential Life Insurance Company Limited. The filing was signed by Priya Nair, Company Secretary, on October 20, 2026.