ICICI Prudential Life Insurance Company Limited — Q1 FY27 earnings call

Call held 15 Jul 2026

Management summary

ICICI Prudential Life Insurance reported a strong Q1 FY27, with VNB growing 24.9% to ₹5.71 billion and PAT up 27.8% to ₹3.86 billion, driven by robust protection business growth and improved VNB margins. The company maintained a healthy solvency ratio of 225.4% and a strong claim settlement ratio of 99.3%. While macro-economic volatility and the impact of input tax credit on margins were noted, management remains focused on sustainable growth and operational efficiency.

Highlights

  • Value of New Business (VNB) grew by 24.9% year-on-year to ₹5.71 billion in Q1-FY2027.

  • VNB margins expanded by 200 basis points to 26.7% from 24.7% in FY2026.

  • Profit After Tax (PAT) increased by 27.8% year-on-year to ₹3.86 billion.

  • Sum assured grew by 31.8% to ₹4.90 trillion, driven by 45.7% YoY growth in protection APE.

  • Retail protection grew by 60.4% year-on-year, contributing 10.5% to APE.

  • Claim settlement ratio remained strong at 99.3% with an average turnaround time of 1 day.

  • Solvency ratio stood at 225.4%, significantly above the regulatory requirement of 150%.

Concerns

  • Macro-economic conditions remained volatile in Q1-FY2027 due to geo-political uncertainties, inflationary concerns, and financial market fluctuations.

  • VNB margins were impacted by the unavailability of input tax credit (GST), an effect expected to persist for another quarter.

  • Non-par sales were subdued due to alternative investment products (fixed deposits) offering more lucrative 'sticker prices' to customers.

Key financials

  1. VNB 5.71 Bn +24.9%YoY
  2. VNB Margin 26.7% +8.1%YoY
  3. PAT 3.86 Bn +27.8%YoY
  4. Sum Assured 4.9 Tn +31.8%YoY
  5. New Business Premium 48.66 Bn +21.3%YoY
  6. APE 21.36 Bn +14.6%YoY
  7. RWRP 15.38 Bn +13.4%YoY
  8. Assets Under Management 3.34 Tn
  9. Solvency Ratio 225.4%
  10. Claim Settlement Ratio 99.3%
  11. 13th Month Persistency 84%
  12. Savings Cost-to-Premium Ratio 13.6%

What they filed

Q1 FY27: revenue up 12.3%, net profit up 27.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue25,157 4,536 15,687 25,400 11,935 −53%22,833 +403%3,299 −79%28,513 +12%
EBITDA327 250 424 223 -6 −102%755 +202%-639 −251%293 +31%
Net profit252 326 386 302 299 +19%390 +20%609 +58%386 +28%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Retail Protection
    60.4% APE growth10.5% Share of APE
  • Group Protection
    37.8% Growth
  • Savings APE
    15.4 Bn Value5.8% Growth
  • Linked Business APE
    6.4% Growth
  • Non-linked Savings (including annuity) APE
    4.94 Bn Value— Growth
  • Group Funds Business
    42.2% Growth
  • Agency channel
    4.63 Bn APE2% Growth
  • Direct channel
    2.86 Bn APE8.3% Growth
  • Bancassurance channel
    5.6% Growth
  • Partnership Distribution channel
    29.5% Growth14.6% Contribution to APE
  • Group business
    38.8% Growth22.9% Contribution to APE

Capital allocation

high confidence
  • Liquidity Liquidity disclosed Solvency ratio of 225.4% is significantly above the regulatory requirement of 150%, positioning the company well to sustain future growth while maintaining financial strength. Assets Under Management stood at ₹3.34 trillion as of June 30, 2026.
    Our solvency ratio continues to be strong at 225.4% at June 30, 2026. Our Assets Under Management stood at ₹3.34 trillion as of June 30, 2026.

Guidance & targets

Profitability

  • VNB Growth Profitability · ongoing · Low confidence absolute VNB growth
    Absolute VNB is what we will continue to focus on.

    — Dhiren Salian

Product Growth

  • Retail Protection Growth Product Growth · ongoing · Low confidence hold these levels and increase going forward
    the endeavor would be to continue to hold these levels and increase going forward so that we continue to take advantage of the opportunity that exists in the protection.

    — Dhiren Salian

  • Protection Growth Product Growth · ongoing · Low confidence continue to build on growth
    Our endeavor would be to keep these levels of protection where they are and continue to build on growth on that.

    — Dhiren Salian

Product Sales

  • Non-par sales Product Sales · as time goes by · Low confidence start to see some pickup
    As time goes by and we see some sort of tempering of those alternative investments, we should start to see some pickup on the non-par side as well.

    — Dhiren Salian

VNB Growth

  • VNB Growth VNB Growth · FY27 · High confidence No guidance
    No, no guidance.

    — Dhiren Salian

Channel Growth

  • Agency Channel APE Growth Channel Growth · ongoing · Low confidence move towards average company growth faster, sooner rather than later
    We would want agency to move towards average company growth faster, sooner rather than later.

    — Dhiren Salian

What to watch in Q2 FY27

VNB Margin impact from input tax credit

Next quarter (Q2 FY27)
Current Impacted, 'third quarter' of non-availability
Target Reduced impact or normalization

Why it matters

This is an explicit drag on margins that management stated would continue for one more quarter. Its resolution or continued impact will affect profitability.

it's largely explained due to the product mix. But again, you'll have to consider that we don't have the GST availability in this quarter. And this is the third quarter where we've had the impact of the input tax rate non-availability. So, you have to factor that in as you look at the margins, but it's largely being explained by the product mix.

Risks & concerns

  • Macro-economic volatility, geo-political uncertainties, inflationary concerns, and financial market fluctuations

    medium

    Macro-economic conditions remained volatile in Q1-FY2027, driven by geo-political uncertainties, inflationary concerns and fluctuations in financial markets.

    Management acknowledged

  • Impact of unavailability of input tax credit on VNB margins

    medium

    The unavailability of input tax credit (GST) is impacting VNB margins and is expected to continue for another quarter.

    Management acknowledged

  • Subdued non-par sales due to competition from alternative investment products

    medium

    The environment is such that alternative fixed-income products offer more lucrative 'sticker prices' compared to non-par products, leading to subdued sales.

    Management acknowledged

  • High base effect for protection growth in H2 FY27

    medium

    Protection growth is coming off a fairly steep base from Q3 and Q4 of the previous year, suggesting that the high growth rates (e.g., 60%+) seen in Q1 FY27 are unlikely to be sustained in H2 FY27.

    Analyst acknowledged

Q&A highlights

4 direct, 1 evasive
VNB margins and impact of GST input tax credit unavailability Partial
it's largely explained due to the product mix. But again, you'll have to consider that we don't have the GST availability in this quarter. And this is the third quarter where we've had the impact of the input tax rate non-availability.

Clarifies the drivers of VNB margins, highlighting both product mix and the ongoing impact of GST input tax credit unavailability, which will persist for another quarter.

Asked by Shreya Shivani

Outlook on non-par sales given competitive environment from alternative investments Direct
the environment is such that there are products on the fixed income side that at this point are little more lucrative for the customer when compared to some of our products, purely from a sticker price perspective... As time goes by and we see some sort of tempering of those alternative investments, we should start to see some pickup on the non-par side as well.

Explains the current headwinds for non-par products (competition from fixed deposits) and provides a conditional outlook for future recovery.

Asked by Shreya Shivani

Stability of Standard Chartered partnership post Prudential's exit as promoter Direct
Standard Chartered has been a partner with us for the last 10 years, right? And in this decade, we have built a deeply integrated relationship that spans not just products, spans technology, processes and customer service... both these organisations, both Standard Chartered and us value this partnership very much and we are focused on delivering the best outcomes for the customers.

Reassures investors about the stability and strength of the long-standing partnership with Standard Chartered, despite changes in Prudential's promoter status, emphasizing deep integration and mutual value.

Asked by Avinash Singh

Impact of high base effect on protection growth in H2 FY27 and VNB growth guidance Partial
You're right, protection does come across a fairly steep base as we come into the second half of the year and that base effect goes away. So, if the question is will I expect to see a 60% plus growth in the second half of the year, very unlikely. This of course is elevated because we're carrying through the levels that we have built up over quarter three and quarter four. Our endeavor would be to keep these levels of protection where they are and continue to build on growth on that. No, no guidance.

Management acknowledges the high base effect for protection in H2 FY27, indicating a likely moderation in growth rates, but reiterates commitment to sustained growth in this segment, while explicitly declining to give VNB growth guidance.

Asked by Prayesh Jain

Prudential's declassification as promoter and implications for their stake holding Evasive
It would be difficult for us to answer that question, Yash. It's best addressed by Prudential.

This question touches on a significant corporate governance and ownership change. Management's deflection indicates sensitivity or lack of direct control over Prudential's future stake decisions, leaving uncertainty for investors.

Asked by Yash Jain

Operational improvements and digital initiatives driving protection business growth Direct
There is a lot of work that we have done on the onboarding stage where we continue to deliver quarter-after-quarter improvement in terms of the frictionless onboarding that we are working through, leveraging digital income validation that's available with external agencies and in all look at making sure that the onboarding of protection is as smooth as possible without letting go of any of the guardrails.

Provides insight into the operational improvements and digital initiatives undertaken to streamline the protection business and drive growth across channels, beyond just the GST tailwind.

Asked by Swarnabha Mukherjee

Reasons for AUM outflows and persistency trends Direct
Unit Linked business has a lock-in that goes away at the end of 5 years with zero surrender charge. So, we do see a spike in exits whenever these policies come to the 5-6-year window... 13th month is broadly steady. You're looking at 84.5% and 84.0%. What you see on the 25th month is the drop that you saw last year that is just carrying through.

Explains AUM outflows as a natural consequence of Unit Linked policies reaching the end of their lock-in period and clarifies that persistency is broadly stable, with the 25th-month drop being a carry-through from previous periods.

Asked by Madhukar Ladha

2 min read 6 chapters

Detailed narrative

Q1 FY27 Performance Overview

ICICI Prudential Life Insurance reported a strong Q1 FY27, with Value of New Business (VNB) growing by 24.9% year-on-year to ₹5.71 billion. This growth was accompanied by a 200 basis point expansion in VNB margins, reaching 26.7%. Profit After Tax (PAT) also saw a significant increase of 27.8% year-on-year, totaling ₹3.86 billion. The company's Assets Under Management (AUM) stood at ₹3.34 trillion as of June 30, 2026, reflecting its scale and customer trust.

Strategic Focus and Regulatory Environment

The company's Board approved a proposal to rename to 'ICICI Life Insurance Limited', pending regulatory approval, following PCHL's request to change its status from 'Promoter' to 'Investor'. On the regulatory front, IRDAI introduced initiatives linking key management compensation with customer-centric outcomes and issued an exposure draft on intermediary disclosures, aiming to enhance transparency and policyholder protection. Management views these as positive steps for sustainable sector growth.

Product Performance: Protection and Savings

Protection business was a key growth driver, with sum assured increasing by 31.8% to ₹4.90 trillion, supported by a 45.7% year-on-year growth in protection APE. Retail protection specifically surged by 60.4% year-on-year, accounting for 10.5% of APE. In the savings segment, New Business Premium grew by 21.3% year-on-year to ₹48.66 billion, driven by a 13.2% growth in policy count. However, non-par sales were subdued due to competition from alternative fixed-income products.

Channel Performance and Distribution Strategy

The company's diversified distribution channels showed varied performance. Agency channel APE grew by 2% year-on-year to ₹4.63 billion, while Direct channel APE increased by 8.3% to ₹2.86 billion. Bancassurance channel grew by 5.6% year-on-year, and the Partnership Distribution channel saw robust growth of 29.5% year-on-year, contributing 14.6% to APE. The company continues to invest in its agency channel with a micro-market-led branch strategy and leverages technology for productivity.

Financial Efficiency and Balance Sheet Strength

Operational efficiencies led to a 50 basis point reduction in the savings Cost-to-Premium ratio, bringing it to 13.6% in Q1-FY2027, despite increased expenses from unavailable input tax credit. The company maintained a robust solvency ratio of 225.4%, well above the 150% regulatory requirement, and a strong claim settlement ratio of 99.3% with a 1-day turnaround time. Furthermore, the investment portfolio has had no non-performing assets since inception, underscoring prudent risk management.

Outlook and Key Priorities

Management acknowledged ongoing macro-economic volatility but expressed confidence in sustaining positive momentum. Key priorities include driving sustainable VNB growth, balancing business expansion with profitability, and prudent risk management. While protection growth is expected to taper from its high base in the second half of FY27, the company aims to maintain current levels and continue building on this segment. They also anticipate a potential pickup in non-par sales if alternative investment rates temper.

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