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Results
15-Apr-26
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Analysis
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ICICI Prudential Life Insurance Company
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Net profit jumps, margins improve
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ICICI Prudential Life Insurance Company, on standalone
basis, has recorded 58% surge in net profit to Rs 608.81 crore in the quarter
ended March 2026 (Q4FY2026). The profit growth was driven by higher investment
income from Shareholders’ funds, which includes gain of Rs 114 crore realised
from the sale of 100% equity shareholding in ICICI Pension Fund Management
Company Limited. Excluding the impact of transaction, the net profit has still increased
28% in Q4FY2026.
The total premium income has increased 17% to Rs
19,648 crore in Q4FY2026, driven by 6% jump in the renewal premium collection
to Rs 9,929 crore. The new business premium increased 31% to Rs 9,719 crore. APE
moved up 9% to Rs 3,830 crore in Q4FY2026.
The Company offers a wide range of products
across various segments such as savings (linked and non-linked), protection and
annuity to meet the specific needs of the customers. The Company has a
well-diversified product mix with FY2026 APE contribution from linked,
non-linked, protection, annuity and group funds at 48.0%, 20.5%, 17.9%, 5.8%
and 7.8% respectively
Cost-to-premium ratio for the savings line of
business reduced by 40 basis points from 12.5% in FY2025 to 12.1% in FY2026.
The reduction in cost ratios is a result of the various cost optimization initiatives
undertaken in the past two years to make the cost structure aligned to the
prevailing product mix. The cost reduction is after accounting for
unavailability of input tax credit, effective 22 September 2025. Total
cost-to-premium ratio for FY2026 stood at 18.2% and remained stable at previous
year’s levels.
The company has exhibited an improvement in the
persistency level with 13th month persistency rising to 82% in Q4FY2026 from 78%
in Q4FY2025, while 61st month persistency also rose to 61% from 62%.
The value of new business (VNB) galloped 21% to
Rs 965 crore in Q4FY2026. New business margin for FY2026 stood at 24.70% showing
rise on sequential basis from 24.40% for 9MFY2026 and over a year ago from 22.80%
in FY2025.
The embedded value surged 11% Rs 52989.0 crore
end March 2026.
AUM of the company increased 2% to Rs 314,000 crore
end March 2026 from Rs 309,359 crore end December 2023 crore and also moved up
from Rs 331,000 crore a quarter ago. The Company has a debt-equity mix of
60:40, and 94.5% of the fixed income investments are in sovereign or AAA rated
instruments. The Company has zero Non-Performing Assets (NPA) since inception,
indicating high quality of the asset book.
The Networth stood at Rs 13629 crore end March
2026, while the solvency ratio of the company was at 227% end March 2026. The
improvement in solvency is primarily due to increase in profit after tax and
realisation from sale of subsidiary.
Embedded Value per share stood at Rs 365.6 per
share at end March 2026.
Commenting on the results, Anup Bagchi, MD &
CEO, ICICI Prudential Life Insurance said, “FY2026 marks a landmark year as we
celebrate 25 years of serving over 20 crore customers with trust and
commitment. The total value of life cover stood at Rs 46.11 lakh crore at end
March 2026, highlighting the strong trust our customers have placed in us over the
years.
Driven by our commitment to customer values and
a resilient operating model, we successfully navigated the impacts of a
challenging global macro environment this year. Our Company’s Profit After Tax
(PAT) registered a robust growth of 34.6% yoy to Rs 1,600 crore. Value of New
Business (VNB) grew by 10.9% yoy to Rs 2,629 crore with a margin of 24.7%. Our
Company’s Embedded Value grew by 10.5% year-onyear to Rs 52,989 crore in
FY2026.
The recent `0% GST reform` in September 2025 has
made insurance policies more affordable and our retail protection segment
registered a strong 50.9% yoy growth in H2FY2026. Consequently, the retail new
business sum assured witnessed robust 49.5% yoy growth in H2FY2026 to end at Rs
4.5 lakh crore in FY2026.
Our focus on innovation in product structures
has allowed us to meet diverse customer needs more effectively. We recently
launched ‘ICICI Pru Global Wealth Multiplier’, a USD denominated product under
the GIFT City framework that enables investments in funds globally, along with
a life cover and ‘ICICI Pru Smart Kid 360’, a guaranteed child savings plan
that secures key milestones through flexible payouts, achievement rewards, and
a premium waiver enabling customers to secure their child`s future milestones,
even in their absence.
We remain committed to delivering superior value
to our customers. Our claim settlement ratio stood at 99.3%, achieved with an
average turnaround time of 1.1 days in FY2026, demonstrating our commitment to
stand by our customers and their families when it matters the most. We continue
to leverage economies of scale, technology and digital solutions to improve
efficiencies, resulting in a reduction of 40 basis points (bps) in our savings
cost-to-premium ratio, which stood at 12.1% during FY2026.
Over the past 25 years, we have had the
privilege of serving customers across generations. With the experience that we
have gained, we remain focused on building a future-ready organisation that
continues to adapt thoughtfully, act with agility and create meaningful impact
by expanding access to insurance and deliver long-term sustainable value to all
stakeholders.”
Financial Performance FY2026
Profit after tax has increased
from Rs 1189 crore in FY2025 to Rs 1600 crore in FY2026, a yoy growth of 34.6%.
The Company’s profit before tax increased from Rs 1336 crore in FY2025 to Rs
1807 crore in FY2026 primarily driven by higher investment income from
shareholders’ funds, which includes gain of Rs 114 crore realised from sale of
100% equity shareholding in ICICI Pension Fund Management Company Limited
(erstwhile ICICI Prudential Pension Funds Management Company Limited).
Premium New business received premium grew by
30.6% yoy from Rs 74.44 billion in Q4FY2025 to Rs 97.19 billion in Q4FY2026.
New business received premium grew by 9.9% yoy from Rs 225.83 billion in FY2025
to Rs 248.10 billion in FY2026. APE for FY2026 stood at Rs 106.41 billion.
Within that, savings including annuity business APE stood at Rs 87.35 billion
and overall protection APE stood at Rs 19.06 billion. The overall protection
APE registered a growth of 16.4% yoy in FY2026. Retail protection APE grew by
32.3% yoy from Rs 5.98 billion in FY2025 to Rs 7.91 billion in FY2026. Notably,
in H2FY2026, it registered a robust growth of 50.9% yoy, in part aided by the
reduction in GST post September 2025. Consequently,
retail new business sum assured grew strongly by 49.5% yoy in H2FY2026 to Rs 4,497.74
billion in FY2026. Total in-force sum assured, which is the quantum of life
cover taken by customers of the Company, grew by 16.9% yoy from Rs 39.43
trillion at end March 2025 to Rs 46.11 trillion at end March 2026.
Net premium earned (gross
premium less reinsurance premium) increased by 8.6% from Rs 47259 crore in
FY2025 to Rs 51336 crore in FY2026. Total investment income decreased from Rs
23522 crore in FY2025 to Rs 12071 crore in FY2026.
Investment income under
unit-linked decreased from Rs 13394 crore in FY2025 to Rs 918 crore in FY2026,
primarily on account of higher realized losses from sale of investments and
decrease in unrealised gains on investments. Investment income under unit-linked
is directly offset by the change in valuation of policyholder liabilities. Investment
income under other than unit-linked increased from Rs 10128 crore in FY2025 to
Rs 11153 crore in FY2026 primarily on account of increase in interest income
and dividend.
Total expenses (including
commission) increased by 5.5% from Rs 9671 crore in FY2025 to Rs 10204 crore in
FY2026. Commission expenses increased by 10.5% from Rs 4689 crore in FY2025 to
Rs 5181 crore in FY2026 in line with growth in premium income and product mix.
Operating expense decreased by 0.8% from Rs 4868 crore in FY2025 to Rs 4830
crore in FY2026. Operating expenses include unit fund expenses (including goods
and service tax on linked charges) amounting to Rs 354 crore (FY2025: Rs 725
crore) under the unit-linked portfolio. The unit fund expenses under the
unitlinked portfolio are directly offset by changes in the valuation of
policyholder liabilities. Operating expenses of other than unit-linked
portfolio increased by 8.1% from Rs 4143 crore in FY2025 to Rs 4476 crore in
FY2026, primarily on account of higher GST expenses emanating from disallowance
of input tax credit on retail business partly offset by decrease in advertising
cost.
Tax on policyholders’ fund
decreased from tax charge of Rs 250 crore in FY2025 to tax reversal of Rs 253
crore in FY2026 primarily on account of reversal of provision for taxes
pertaining to earlier years post conclusion of income tax assessment.
Claims and benefit payouts
(net of reinsurance) increased by 2.2% from Rs 46182 crore in FY2025 to Rs
47195 crore in FY2026 primarily on account of increase in maturity and death
claims partly offset by decrease in surrenders/withdrawals claims.
Change in actuarial liability,
including funds for future appropriation and fund reserve, decreased from Rs
13568 crore in FY2025 to Rs 4684 crore in FY2026. Change in fund reserve, which
represents change in liability carried on account of units held by unit-linked
policyholders, decreased from (Rs 3602) crore in FY2025 to (Rs 10188) crore in
FY2026. The decrease in fund reserves is primarily due to lower investment
income in the unit-linked portfolio. Non-unit reserves, including funds for
future appropriation, decreased from Rs 17174 crore in FY2025 to Rs 14215 crore
in FY2026.
Retail new business sum assured grew strongly by
49.5% yoy in H2FY2026 to Rs 4.50 lakh crore in FY2026. The total in-force sum
assured, which is the quantum of life cover taken by customers of the Company,
grew by 16.9% yoy from Rs 39.43 lakh crore at end March 2025 to Rs 46.11 lakh
crore at end March 2026.
The Value of New Business (VNB) stood at Rs 965
crore in Q4FY2026. The VNB grew by 10.9% yoy and stood at Rs 2,629 crore with a
margin of 24.7% in FY2026.
Claim Settlement Ratio: Claim settlement ratio
stood at 99.3% with an average turnaround time of 1.1 days for non-investigated
individual death claims in FY2026.
13th month and 49th month persistency stood at
84.5% and 71.8% respectively in FY2026.
The final dividend proposed for FY2026 is Rs 1.65
per equity share.
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ICICI Prudential Life Insurance: Results
Standalone Policyholders Account
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2603 (3)
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2503 (3)
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Var %
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2603 (12)
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2503 (12)
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Var %
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Premium earned (net)
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19180.08
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16369.17
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17
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51335.63
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47259.41
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9
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Income from Investments
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-16302.41
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-904.85
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1702
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10865.15
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22819.49
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-52
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Other income
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61.87
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52.57
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18
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229.87
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223.23
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3
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Contribution from the Shareholders` account
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843.01
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120.62
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599
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989.73
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317.81
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211
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Total Income
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3782.55
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15637.51
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-76
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63420.38
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70619.94
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-10
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Commission
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1795.47
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1543.54
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16
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5181.07
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4689.23
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10
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Op. expenses related to Insurance business
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1418.34
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934.16
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52
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4429.84
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4141.77
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7
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Others
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2.93
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191.87
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-98
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377.82
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695.25
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-46
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Benefits paid (Net)
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13754.48
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12327.08
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12
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47195.07
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46182.47
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2
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Change in valuation of policy liabilities
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-14419.42
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161.97
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LP
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4027.44
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13571.44
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-70
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Provision for taxation
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-401.44
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185.19
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LP
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-252.96
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250.13
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LP
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Total Expense
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2150.36
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15343.81
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-86
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60958.28
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69530.29
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-12
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PAT
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1632.19
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293.70
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456
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2462.10
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1089.65
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126
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Transfer to Shareholders` account
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1211.16
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376.11
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222
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1805.20
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1093.05
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65
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ICICI Prudential Life Insurance: Results
Standalone Shareholders Account
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2603 (3)
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2503 (3)
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Var %
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2603 (12)
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2503 (12)
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Var %
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Amounts transferred from Policyholders`
account
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1211.16
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376.11
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222
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1805.20
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1093.05
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65
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Income from investments
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307.43
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224.20
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37
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1152.87
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698.77
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65
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Total Income
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1518.59
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600.31
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153
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2958.07
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1791.82
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65
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Expenses (apart from Insurance)
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50.34
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55.60
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-9
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198.93
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127.59
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56
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Contribution to policyholders account
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843.01
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120.62
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599
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989.73
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317.81
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211
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Others
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71.53
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9.97
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617
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76.66
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9.99
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667
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Total Expenses
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964.88
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186.19
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418
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1265.32
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455.39
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178
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PBT Before EO
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553.71
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414.12
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34
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1692.75
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1336.43
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27
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EO
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114.00
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0.00
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-
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114.00
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0.00
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-
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PBT
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667.71
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414.12
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61
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1806.75
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1336.43
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35
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Tax
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58.90
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27.83
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112
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206.39
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147.37
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40
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PAT
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608.81
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386.29
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58
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1600.36
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1189.06
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35
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EPS (Rs)*
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13.9
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10.7
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10.4
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8.2
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Equity
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1449.3
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1445.3
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1446.2
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1441.9
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Embedded Valued (Rs)
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365.6
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331.8
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336.8
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298.5
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* EPS and EV are calculated on diluted equity
as given for each year. EPS is excluding EO and relevant tax. Face value of
Rs 10 each, PL: Profit to Loss, LP: Loss to Profit,
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Figures in crore, Source: Capitaline Corporate
Database
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