ICICI Prudential Life Insurance Company Limited

The company's retail protection segment demonstrated robust growth of 40.8% year-on-year in Q3-FY2026, contributing to a 51.6% increase in retail sum assured. This surge was significantly aided by recent GST reforms, which made products 18% cheaper, stimulating consumer demand in an underpenetrated market (13% coverage). Management views this as a sustained effort, not pent-up demand, and expects continued momentum in this segment.

For the nine months ended December 31, 2025, the Value of New Business (VNB) stood at ₹16.64 billion with a healthy margin of 24.4%. Despite the withdrawal of input tax credit effective September 22, 2025, margins were maintained due to a favorable product mix (higher retail protection), improved product profitability, and a positive yield curve movement. The company also reduced its 9M-FY2026 cost-to-premium ratio to 19.3% from 19.8% in the previous year, with the savings line of business seeing a 90 basis point reduction to 12.7%.

While Agency and Direct channels, contributing 52% to retail APE, saw modest growth of 0.8% and 1.1% respectively in Q3 against a high base, Bancassurance grew by 10.5% and Partnership Distribution by 51.6%. Management highlighted the ability of proprietary channels to adapt to macro-environmental shifts and expressed confidence in capturing growth opportunities across its diversified distribution network, which includes over 2.35 lakh advisors and 51 bank partnerships.

The 13-month persistency stood at 84.4%, with management acknowledging challenges in specific product pockets. However, they clarified that regulatory changes in 2019, particularly for ULIPs and traditional books, now require policies to remain active longer, pushing back foreclosure dates. While this depresses reported persistency, it ensures that Assets Under Management (AUM) remain with the company, contributing to earnings. Corrective actions are underway to improve persistency to 85% and above by mid-next year.

ICICI Prudential Life introduced three new products: 'ICICI Pru Wealth Forever', 'ICICI Pru SmartKid 360', and 'ICICI Pru Wealth Elite Pro', designed for long-term wealth creation and goal protection. The company emphasizes a full product basket across unit-linked, market-linked, guaranteed, and protection categories, aligning its offerings with consumer demand rather than internal biases. This strategy, coupled with cost structure alignment, positions the company for stable growth.

The company transferred its pension management subsidiary to ICICI Bank, citing synergy with the bank's strategy and the benefit derived from the annuity phase of pension, where ICICI Pru Life participates. In terms of capital, the solvency ratio stood at 214.8% as of December 31, 2025, primarily boosted by the addition in PAT. During the quarter, the company called back ₹12 billion in previously raised debt and subsequently raised fresh subordinated debt to replace it.