ICICI Life Insurance (ICICIPRULI) Q2 25/26 earnings summary

Executive summary

• Profit after tax rose 26% year-over-year to ₹6.01 billion for H1-FY2026, driven by higher investment income from shareholders' funds.

• Value of New Business (VNB) was ₹10.49 billion with a margin of 24.5%; Embedded Value increased 9.7% to ₹505.01 billion.

• Total premium grew 9.2% year-over-year to ₹212.51 billion for H1-FY2026; assets under management reached ₹3.21 trillion, up 0.3%.

• Leadership changes include new IRDAI Chairman and board appointments, supporting regulatory stability and strategic direction.

• Maintained a high claim settlement ratio of 99.3% with 1.1 days average turnaround and ranked no. 1 in NPS for the third consecutive year.

Financial highlights

• 13-month persistency ratio at 85.3% as of September 30, 2025; 49th month persistency at 70.5%.

• Cost-to-premium ratio improved by 280 bps to 19.2%; savings line cost-to-premium at 12.7%.

• Retail sum assured grew 17.2% year-over-year to ₹1,716.14 billion; new business sum assured grew 19.3% to ₹6.77 lakh crore.

• Solvency ratio at 213.2%, well above regulatory threshold.

• No non-performing assets since inception; 96.2% of fixed income investments in sovereign or AAA-rated instruments.

Outlook and guidance

• Management expects GST reforms and exemption on life insurance premiums to spur volume growth, with early signs of increased customer traction.

• H2 FY26 is expected to benefit from a benign base and GST-driven demand, supporting growth and VNB.

• Focus remains on growing absolute VNB, leveraging product mix flexibility, cost optimization, and digital transformation.

• Industry opportunities highlighted in long-term savings, protection, retirement, and health segments.

• Persistency and customer traction are expected to remain strong, with positive trends post-GST reform.