ICICI Prudential Life Insurance reported a healthy performance for the September quarter (Q2 FY26), with profit after tax (PAT) rising 19.1 per cent year-on-year to Rs 300 crore, compared to Rs 252 crore in Q2 FY25 — slightly above market expectations.
For the first half of FY26 (H1 FY26), the insurer’s profit grew 26 per cent YoY to Rs 601 crore, supported by steady premium growth, improved efficiency, and strong performance in its protection segment.
Robust Growth in Premium Income
During Q2 FY26, ICICI Prudential’s gross premium income stood at Rs 13,320 crore, up 19 per cent YoY from Rs 11,175.2 crore. The annualised premium equivalent (APE), however, came in marginally lower at Rs 2,450 crore versus Rs 2,500 crore a year ago, reflecting a 2 per cent decline.
Despite the dip in APE, the company maintained a stable value of new business (VNB) margin at 23.5 per cent, broadly in line with last year’s 23.4 per cent, as the higher share of ULIP (unit-linked insurance plans) limited margin expansion.
Management Outlook
According to Zee Business estimates, the insurer’s Q2 results were expected to show steady improvement in non-linked business growth and a recovery in the protection segment, which remains a key focus area. The results were broadly in line with these expectations.
The management noted that product mix improvement and the resurgence in protection business should continue to drive growth in the coming quarters.
ICICI Prudential has also benefited from the government’s recent GST reforms, which have made life insurance products more affordable.
The company has passed on this benefit to customers, leading to increased demand and improved conversion rates across categories.
H1 FY26 Highlights: Profitable and Sustainable Growth
For half of FY26, the insurer recorded a total premium income of Rs 21,251 crore, up 9.2 per cent YoY, while its VNB stood at Rs 1,049 crore with a 24.5 per cent margin.
The new business sum assured grew 19.3 per cent YoY to Rs 6.77 lakh crore, reflecting strong traction in retail protection and overall customer coverage.
The embedded value (EV) rose 9.7 per cent YoY to Rs 50,501 crore, while the value of in-force business (VIF) increased by 18.1 per cent YoY to Rs 37,761 crore as of September 30, 2025.
The claim settlement ratio remained strong at 99.3 per cent, and the 13th-month persistency ratio improved to 85.3 per cent, signalling customer trust and retention.
Analyst View
Market experts expect the company’s non-linked and protection businesses to continue driving growth, while cost efficiencies and a balanced product mix should support profitability. Although the higher share of ULIP business could keep VNB margins flat, the underlying fundamentals remain strong.
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