ICICI Prudential Life Insurance's Q2 net profit up 19% at ₹299.26 crore

ICICI Prudential Life Insurance reported a 19 per cent year-on-year (Y-o-Y) increase in net profit to ₹299.26 crore in the July–September quarter of FY26 (Q2FY26) from ₹251.72 crore in Q2FY25, supported by healthy growth in premium income and a drop in expenses.

 

The net premium income of the life insurer stood at ₹11,843 crore, up 10.12 per cent Y-o-Y. However, annualised premium equivalent (APE) slipped 3.27 per cent Y-o-Y to ₹2,422 crore. APE is the sum of annualised first-year regular premiums plus 10 per cent weighted single premiums.

 

According to Anup Bagchi, managing director and chief executive officer (MD & CEO), ICICI Prudential Life Insurance, there has been a pronounced impact on the retail protection category after the recent revision of Goods and Services Tax (GST) in individual life insurance policies.

 

“We are happy to share that we have passed on the benefit of the GST exemption to our customers, enabling them to enjoy savings on their premium payments… the early trends indicate a positive response post the GST exemption on life insurance. We have observed growth in website traffic, lead volumes, and conversion rates across product segments, indicating enhanced customer traction,” he said.

 

Bagchi added, “The effect of the GST exemption has been more pronounced in the retail protection category. For us, protection is a focus area, and notably, the retail protection segment has grown at a compound annual growth rate (CAGR) of 31 per cent over the last three years (H1FY23 to H1FY26). New business sum assured, which is the quantum of life cover taken by customers, grew 19.3 per cent year-on-year to ₹6.77 lakh crore in H1FY26, and as of September 30, 2025, our total in-force sum assured stood at ₹42.16 lakh crore. Going forward, we expect the protection segment to grow substantially.”

 

The value of new business (VNB) of the insurer stood at ₹592 crore as against ₹586 crore in Q2FY25. The VNB margin was at 24.44 per cent as against 23.4 per cent.

 

While expenses dropped 6 per cent to ₹2,152 crore, net commission rose 3 per cent to ₹1,272.7 crore.

 

The solvency ratio of ICICI Prudential rose to 212.3 per cent as of September 30, 2025, as against 188.6 per cent during the same period last year. The 13th-month persistency ratio of the insurer stood at 85.3 per cent, compared to 89.8 per cent as of September 30, 2024.