Strong Profit Growth

ICICI Prudential Life Insurance Company Limited has announced its financial results for the first half of fiscal year 2026 (H1-FY2026), showcasing robust growth in key metrics. The company reported a significant 26% year-on-year increase in Profit After Tax (PAT), reaching ₹601.00 crore for H1-FY2026, up from ₹477.00 crore in the same period last year. This substantial growth in profitability was primarily driven by higher investment income from shareholders' funds.

Value of New Business and Margin

The Value of New Business (VNB) for H1-FY2026 stood at ₹1,049.00 crore, with a VNB margin of 24.5%. This represents a slight improvement from the 23.7% margin reported in H1-FY2025.

Premium Income and Business Growth

Total premium income grew by 9.2% year-on-year to ₹21,251.00 crore in H1-FY2026. The new business received premium increased by 8.7% to ₹9,456.00 crore. Notably, the company's protection Annual Premium Equivalent (APE) grew by 6.7% year-on-year to ₹828.00 crore.

Impressive Growth in Sum Assured

ICICI Prudential Life Insurance demonstrated strong growth in its insurance coverage:

• New Business Sum Assured increased by 19.3% year-on-year to ₹6.77 lakh crore
• Total in-force sum assured grew by 15.9% to ₹42.16 lakh crore

Embedded Value and Assets Under Management

The company's Embedded Value (EV) saw a healthy growth of 9.7% year-on-year, reaching ₹50,501.00 crore. Assets Under Management (AUM) marginally increased by 0.3% to ₹3.21 lakh crore as of September 30, 2025.

Improved Operational Efficiency

ICICI Prudential Life Insurance reported enhanced operational efficiency:

• Cost-to-premium ratio reduced by 280 basis points to 19.2%
• Cost-to-premium for the savings business decreased by 280 basis points to 12.7%

Persistency and Solvency

The company maintained strong persistency ratios:

The solvency ratio stood at a robust 213.2%, well above the regulatory requirement of 150%.

Management Commentary

Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, commented on the results: "We welcome the Indian Government's recent GST reforms aimed at making life insurance affordable and accessible. We are happy to share that we have passed on the benefit of GST exemption to our customers, enabling them to enjoy savings on their premium payments."

He added, "The early trends indicate a positive response post the GST exemption. We have observed growth in website traffic, both lead volumes and conversion rates across product segments, indicating enhanced customer traction."

Outlook

The company expects the protection segment to grow substantially going forward. With a diversified product mix, multi-channel distribution network, and a conducive business environment, ICICI Prudential Life Insurance is well-positioned to deliver profitable and sustainable business growth.

The strong financial performance, coupled with strategic initiatives and regulatory reforms, sets a positive tone for ICICI Prudential Life Insurance's future growth prospects in the Indian life insurance market.

ICICI Prudential Life Insurance , one of India's leading private life insurers, has reported a robust financial performance for the second quarter. The company's net profit surged by 18% year-on-year, reaching ₹296.00 crore, up from ₹251.00 crore in the same period last year. This growth underscores the company's resilience and strategic focus in a dynamic market environment.

Key Financial Highlights

• Net Profit: ₹296.00 crore (Q2), up 18% year-on-year
• Annualised Premium Equivalent (APE): Declined 3% to ₹2,422.00 crore
• Value of New Business (VNB): Grew marginally by 1% to ₹592.00 crore
• VNB Margin: Improved to 24.4% from 23.4% in the previous year

Profitability and Business Growth

Despite challenging market conditions, ICICI Prudential Life Insurance demonstrated resilience in its financial performance. The company's net profit saw a significant increase, rising from ₹251.00 crore to ₹296.00 crore year-on-year in the second quarter.

Premium and Product Mix

The company's Annualised Premium Equivalent (APE) experienced a slight decline of 3%, decreasing from ₹2,504.00 crore to ₹2,422.00 crore. This minor setback in premium collection could be attributed to various market factors and changing consumer preferences.

Value of New Business and Margin

ICICI Prudential Life's Value of New Business (VNB) showed a marginal growth of 1%, increasing from ₹586.00 crore to ₹592.00 crore. More notably, the VNB margin improved from 23.4% to 24.4%, indicating enhanced profitability in new business acquisition.

Conclusion

ICICI Prudential Life Insurance's Q2 results demonstrate a mixed but overall positive performance. The significant increase in net profit and improvement in VNB margin highlight the company's ability to enhance profitability even in the face of slightly declining premium collections. As the insurance sector continues to evolve, ICICI Prudential Life appears to be adapting its strategies to maintain growth and improve operational efficiency.