ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life reported a Value of New Business (VNB) of ₹26.29 billion, marking a 10.9% YoY growth in FY2026. Profit After Tax (PAT) grew strongly by 34.6% YoY to ₹16 billion, partly aided by a ₹1.14 billion gain from the sale of ICICI Pension Fund Management Company. The VNB margin expanded significantly by 190 basis points YoY to 24.7% (from 22.8% in FY2025), driven by an improved product mix and enhanced operational efficiencies.

The retail protection segment was a key growth driver, benefiting from GST reforms effective September 2025, which led to a 2.5 times higher retail sum assured growth post-reform. In H2-FY2026, retail protection witnessed a robust 50.9% YoY growth, contributing to a full-year growth of 32.3%. The company's total retail new business sum assured reached ₹4.5 trillion, demonstrating its strong position in this segment.

The company maintained an industry-leading claim settlement ratio of 99.3% with an average turnaround time of 1.1 days. Its solvency ratio stood at a robust 227.3%, significantly above the regulatory requirement of 150%. Operational efficiencies, partly driven by the adoption of AI/ML technologies, led to a 40 basis points reduction in the savings cost to premium ratio, bringing it to 12.1% in FY2026, while the total cost to premium ratio remained stable at 18.2%.

The Embedded Value (EV) grew by 10.5% YoY to ₹529.89 billion as of March 31, 2026, with an Embedded Value Operating Profit (EVOP) of ₹57.02 billion in FY2026. However, persistency variance was negative ₹2.64 billion, primarily attributed to higher withdrawals in the 100% premium back annuity product. The Return on Embedded Value (RoEV) for FY2026 was 11.9%.

While overall APE grew by 2.2% YoY to ₹106.41 billion, the agency and direct channels experienced declines, largely due to a high base in linked and annuity businesses from the previous year. Bancassurance grew by 3.6% YoY, contributing 29.8% to total APE, and Partnership Distribution grew by 23.4% YoY, contributing 13.2%. Management outlined a strategy focused on granular, micro-market led branch expansion, leveraging technology and analytics to improve productivity and revive growth in underperforming channels.

The company noted that new business sales in March 2026 were impacted by geopolitical disruption^🌐s in the Middle East, leading to a slowdown across most segments except protection. Additionally, volatile equity markets affected linked business APE growth, which was only 1.6% YoY. Competition from steep bank Fixed Deposit rates also subdued growth in non-par products, as the company prioritizes accretive margins over aggressive growth in this segment.

ICICI Prudential Life maintained its highest ranking in the Indian life insurance industry for ESG, receiving the Platinum Award for its FY2025 ESG report. The company highlighted its commitment to environmental sustainability through green energy adoption and LEED/IGBC Platinum certifications for its headquarters and branches. It also reported a 30% gender diversity and covered 53.8 million lives through micro-insurance products for financial inclusion, with an overall claim settlement ratio of 99.8%.

The company is seeking forbearance for a year for the IND-AS transition, with plans to go live in FY2027. Management indicated that once IND-AS is implemented, the focus for investors will likely shift from RoEV to ROE for better comparability with other financial services companies, as RoEV will have less significance. A reclassification of the shareholder share of MTM on policyholder funds to VIF from ANW was noted as an alignment with market practice, with no impact on total EV.