ICICI Prudential Life Insurance Company delivered strong Q3 FY26 financial results, with net profit rising 19.6% year-on-year to ₹390.00 crore compared to ₹326.00 crore in the same quarter last year. The insurer's profitability improved significantly despite muted overall premium growth, driven primarily by higher investment income from shareholders' funds.

Financial Performance Highlights

The company's quarterly performance demonstrated robust growth across key metrics:

For the nine-month period ending December 2025, ICICI Prudential Life Insurance's net profit increased 23.5% to ₹992.00 crore. The value of new business for the nine-month period reached ₹1,664.00 crore, with the VNB margin expanding to 24.4% from 22.8% in the previous year.

Protection Segment Drives Growth

The protection segment emerged as the primary growth driver for the quarter. Key performance indicators in this segment showed exceptional momentum:

• Retail protection annualised premium equivalent jumped 40.8% year-on-year in Q3 FY26
• Retail new business sum assured surged 51.6% to ₹1.24 lakh crore
• Overall APE for the quarter rose 3.6% to ₹2,525.00 crore

The strong performance in the protection segment contributed significantly to the improved VNB margin, reflecting better product mix and enhanced cost discipline across operations.

Balance Sheet Strength

ICICI Prudential Life Insurance maintained a robust financial position with key balance sheet metrics showing healthy growth:

The solvency ratio of 214.8% remained well above the regulatory requirement of 150.0%, indicating strong capital adequacy and financial stability.

Operational Metrics and Challenges

Persistency metrics presented a mixed picture for the quarter. The 13th-month persistency stood at 84.4% while the 49th-month persistency was recorded at 71.3%. The company acknowledged pressure in select channels and product segments, which are being monitored closely to address any operational challenges.

Market Response

Following the earnings announcement, ICICI Prudential Life Insurance Company's share price gained 2.6% in afternoon trading, reaching ₹698.30 on the NSE. The stock has delivered approximately 9.8% returns over the past year, including the current day's gains, though it has underperformed the benchmark Nifty 50, which returned over 11.0% during the same period.

ICICI Prudential Life Insurance delivered strong third-quarter results, with shares gaining 2% on Tuesday, January 13, following the announcement of improved business metrics and margin expansion for the December quarter.

Strong Value of New Business Performance

The insurer demonstrated robust business growth with value of new business (VNB) climbing significantly during the quarter. The company's focus on profitable business generation reflected in both volume and margin improvements.

Margin Expansion Highlights Efficiency

The company witnessed sharp expansion in VNB margins, which improved to 24.4% from 21.2% in the same quarter last year. This 320 basis points improvement indicates enhanced operational efficiency and better product mix optimization. The margin expansion demonstrates the insurer's ability to generate higher value from new business while maintaining competitive positioning.

Premium Growth Maintains Steady Trajectory

Total annualised premium equivalent grew at a measured pace, rising 4% year-on-year to ₹2,525.00 crore from ₹2,438.00 crore in the corresponding quarter last year. This steady growth pattern reflects consistent business momentum and customer acquisition across the insurer's product portfolio.

Market Response and Stock Performance

The positive quarterly results drove investor confidence, with ICICI Prudential Life Insurance shares trading 1.5% higher at ₹690.60 following the announcement. The stock has gained 3% on a year-to-date basis, reflecting sustained market confidence in the company's business strategy and execution capabilities.