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.

ICICI Prudential Life Insurance has delivered robust financial performance in the third quarter of FY26, showcasing strong growth across key profitability metrics. The insurance major reported consolidated net profit of ₹387.15 crore, marking a significant improvement from the previous year's performance.

Financial Performance Highlights

The company's quarterly results demonstrate solid operational efficiency and business growth. The following table summarizes the key financial metrics:

The 19.15% year-on-year growth in net profit reflects the company's ability to maintain strong financial discipline while expanding its business operations. This performance indicates effective management of both revenue generation and cost optimization strategies.

Value of New Business Margin Expansion

A notable highlight of the quarter was the expansion of the Value of New Business (VNB) margin to 24.4%. This metric is particularly significant for life insurance companies as it measures the profitability of new business written during the period. The margin expansion suggests improved product mix and pricing strategies, contributing to enhanced long-term value creation for shareholders.

Market Response

Investors responded positively to the quarterly results, with ICICI Prudential Life Insurance shares trading 3.58% higher at ₹704.20 on the BSE at 1:45 PM. The stock's upward movement reflects market confidence in the company's financial performance and growth trajectory.

Business Outlook

The strong Q3 FY26 results position ICICI Prudential Life Insurance favorably in the competitive life insurance sector. The combination of robust profit growth and improved VNB margins demonstrates the company's operational excellence and strategic focus on profitable business expansion.