ICICI Prudential Life Q1FY26 results: Net profit rises 34% to ₹302 crore

Premium income grew nearly 8% year-on-year while expenses declined 4.72%; APE and VNB saw a dip even as solvency and persistency ratios remained strong

ICICI Prudential Life Insurance’s net profit increased 34 per cent to ₹302 crore in the first quarter of FY26 (Q1FY26) from ₹225.4 crore a year ago, driven by growth in premium and fall in expenses.  

 

The insurer’s net premium income grew by nearly 8 per cent year-on-year (Y-o-Y) to ₹8,503 crore. However, the annualised premium equivalent (APE) of the insurer slipped 5 per cent Y-o-Y to ₹1,864 crore. APE is the sum of annualised first-year regular premiums, plus 10 per cent weighted single premiums.

 

The company’s expenses dropped by 4.72 per cent Y-o-Y to ₹ 1,891.5 crore in the quarter under review. Its value of new business (VNB) slipped 3.18 per cent Y-o-Y to ₹457 crore.  

  The company reported a contraction in VNB margin to 24.5 per cent in Q1 FY26, compared to 24 per cent in the year-ago period.

 

 

“We reported a total premium growth of 8.1 per cent Y-o-Y in Q1 on the back of our extensive distribution and comprehensive product suite. Protection continues to remain at the heart of our business strategy and we registered 24.1 per cent Y-o-Y growth in our retail protection business. Our total new business sum assured grew 36.3 per cent Y-o-Y in the same period,” said Anup Bagchi, managing director and chief executive officer of ICICI Prudential Life Insurance.

 

He said the insurer would continue to work on its strengths. “Customer centricity, product leadership, extensive distribution network, and business excellence, aided by the building blocks of people, digitalisation and analytics will help us achieve our core objective of growing the absolute VNB,” Bagchi added.

 

In Q1FY26, ICICI Prudential Life’s solvency ratio stood at 212 per cent against 187.9 per cent in the year-ago period. Its persistency ratio remained healthy with the 13th month persistency ratio at 80.8 per cent as against 85.7 per cent; while the 61st month ratio stood at 63.4 per cent in the quarter under review as opposed to 65.8 per cent. 

 

Persistency ratio refers to the percentage of policyholders who continue renewing their policies over time.