ICICI Prudential Life Insurance Q1 Results FY26: Stable Growth Amid Market Volatility

Mumbai | July 16, 2025 – ICICI Prudential Life Insurance Company Ltd., a leading private sector life insurer in India, announced its Q1 FY26 results showcasing steady growth in profit, strong premium momentum, and improving operational efficiency despite sequential pressure on margins.

The company reported a net profit (PAT) of ₹301.99 crore, marking a robust 34.6% year-on-year (YoY) growth, driven primarily by improved investment income and efficient cost control.

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🧾 Key Financial Highlights (Q1 FY26):

• Revenue (Total Income): ₹25,320.15 crore
  ↳ Up 0.1% YoY from ₹25,288.34 crore
  ↳ Up 61.4% QoQ from ₹15,687.04 crore

• EBITDA (Profit Before Tax): ₹404.08 crore
  ↳ Up 31.5% YoY
  ↳ Down 21.8% QoQ

• EBITDA Margin: 1.60%
  ↳ Up +49 bps YoY
  ↳ Down -256 bps QoQ

• PAT (Net Profit): ₹301.99 crore
  ↳ Up 34.6% YoY
  ↳ Down 21.6% QoQ

• PAT Margin: 1.19%
  ↳ Up +101 bps YoY
  ↳ Down -258 bps QoQ

• Earnings Per Share (EPS): ₹2.21
  ↳ Up 34.6% YoY
  ↳ Down 21.6% QoQ

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💼 Premium and Investment Performance

While total income grew only 0.1% YoY, a closer breakdown reveals positive underlying momentum:

• Premium Income: ₹8,954.03 crore (↑12.6% YoY)

• Investment Income: ₹16,366.12 crore

The significant sequential surge in investment income (QoQ up 61.4%) highlights seasonal strength in the insurance business cycle.

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💰 Value of New Business and Sum Assured

• New Business Sum Assured (NBSA): ₹3,71,452 crore (↑36.3% YoY)

• Value of New Business (VNB): ₹456.77 crore (↓3.2% YoY)

• VNB Margin: 24.5% (↑50 bps YoY from 24.0%)

Although the absolute VNB declined, the margin improvement suggests stronger profitability per policy, and growing demand for protection-oriented plans.

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📊 Asset Quality & Solvency

• Assets Under Management (AUM): ₹3,24,489 crore (↑5.1% YoY)

• Solvency Ratio: 212.3% (vs IRDAI minimum requirement of 150%)

The insurer maintained its strong capital buffer and reported zero Non-Performing Assets (NPAs) since inception, reinforcing investor confidence and underwriting discipline.

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⚙️ Operational Efficiency

• Cost-to-Premium Ratio: Improved to 21.2% from 24.0% YoY

This improvement points to better resource utilization and scale leverage, essential in a competitive insurance market. It reflects the company’s focus on tech-enabled distribution and operational optimization.

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🧠 Management Commentary (Interpretation)

Company management noted that the performance was in line with expectations:

“Our continued focus on value-accretive protection products and operational efficiency has enabled strong profitability growth. While seasonal premium inflows influence quarterly margins, our fundamentals remain strong.”

They added that H2 FY26 is expected to bring higher new business momentum, driven by festive season demand and increasing penetration of digital channels.

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🏢 Company Overview

Founded in 2000, ICICI Prudential Life Insurance Company Ltd. is a joint venture between ICICI Bank and Prudential plc, headquartered in Mumbai. It has insured over 100 million lives, with an in-force sum assured of ₹35.1 trillion.

Key facts:

• Market Cap: ~₹97,183 crore (as of July 15, 2025)

• Promoter Holding: 73%

• Business Segments: Life insurance, retirement, protection, and annuity

• Distribution Network: Includes bancassurance, agency, digital, and third-party channels

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⚖️ Challenges & Outlook

Despite solid results, some challenges remain:

• Seasonal income fluctuations tied to market returns

• Lower sequential margins indicating volatility in product mix and pricing

• Rising competition from newer digital-first insurers

However, analysts remain bullish on the long-term prospects:

“ICICI Prudential has built a solid foundation of trust and consistency. As financial literacy grows and protection needs rise, insurers like ICICI Pru are poised for sustainable growth,” said a senior analyst at a brokerage firm.

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❓ FAQs on ICICI Prudential Life Insurance Q1 FY26

Q1. What was ICICI Prudential Life’s Q1 FY26 Net Profit?
₹301.99 crore, up 34.6% YoY.

Q2. What is the solvency ratio of the company?
212.3%, well above IRDAI’s minimum of 150%.

Q3. How did the VNB and VNB margin perform?
VNB declined 3.2% YoY, but the VNB margin improved to 24.5% from 24.0%.

Q4. How much did premium income rise YoY?
Premium income increased by 12.6% YoY to ₹8,954.03 crore.

Q5. Is ICICI Prudential financially stable?
Yes, with strong solvency, zero NPAs since inception, and growing AUM, the company maintains a healthy financial position.

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