Has ICICI Prudential Life's Q2 Net Profit Decreased to Rs 295.8 Crore?
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Synopsis
ICICI Prudential Life Insurance recently revealed a drop in Q2 net profit to Rs 295.8 crore, marking a 1.72% decline from the previous year. Despite this, the company saw an 18% increase year-on-year, showcasing resilience in a challenging market.
Key Takeaways
- Net profit for Q2 FY26 is Rs 295.8 crore, a 1.72% decrease.
- Year-on-year profit increased by 18%.
- Gross premium income surged by 19% to Rs 13,320 crore.
- VNB margin improved to 24.4%.
- Agency business APE grew by 23%.
Mumbai, Oct 14 (NationPress) ICICI Prudential Life Insurance announced a 1.72 percent reduction in its net profit for the July–September segment (Q2) of FY26, reporting Rs 295.8 crore, down from Rs 300.99 crore in the same quarter of the previous financial year (Q2 FY25).
Nonetheless, the insurer noted an 18 percent increase in net profit year-on-year (YoY), compared with Rs 251 crore during the equivalent period last financial year (Q2 FY25), as per its stock exchange disclosure.
The decline in profit coincided with a minor drop in the company's new business performance, with the annualised premium equivalent (APE) dipping 2 percent YoY to Rs 2,450 crore, down from Rs 2,500 crore.
Despite the slight fall in profit and APE, the company's gross premium income surged by 19 percent to Rs 13,320 crore, an increase from Rs 11,175.2 crore in the same quarter last year, driven by consistent growth in the retail segment.
Additionally, total premium income saw a 10 percent rise to Rs 12,297 crore during the quarter, as detailed in the filing.
The Value of New Business (VNB) saw a modest uptick of 1 percent to Rs 592 crore, compared to Rs 586 crore in Q2 FY25, while the VNB margin improved to 24.4 percent from 23.4 percent, reflecting enhanced profitability in new business.
In terms of product composition, linked savings products represented 48 percent of APE, non-linked savings 22 percent, and protection products 19 percent.
The retail protection APE increased 2.4 percent to Rs 309 crore, and annuity APE rose 11.8 percent to Rs 935 crore.
By distribution method, the agency segment experienced robust growth with APE escalating 23 percent to Rs 305 crore, while the direct channel also recorded a 23 percent increase to Rs 546 crore.
Conversely, bancassurance APE declined 21 percent to Rs 1,067 crore, although partnership distribution grew 15 percent to Rs 767 crore.
Operational efficiency showed improvement with the cost-to-total premium ratio for the savings line of business decreasing to 17.7 percent from 20.5 percent.
As of September, the company's solvency ratio was recorded at 213.2 percent, slightly above 212.2 percent a year earlier.
Assets under management (AUM) grew to Rs 3.21 lakh crore from Rs 3.09 lakh crore in September 2024, while embedded value (EV) increased to Rs 50,501 crore from Rs 47,951 crore.
Following this announcement, ICICI Prudential Life Insurance shares experienced a 3 percent uptick, reaching Rs 610.65 on the BSE.
Point of View
It is imperative to recognize the fluctuations in financial performance within the insurance sector. ICICI Prudential's recent profit decline paired with significant year-on-year growth indicates a dynamic market landscape. The company's robust gross premium income and improvements in operational efficiency suggest a strategic adaptability, which is crucial for navigating today's economic challenges.
NationPress
14/10/2025
Frequently Asked Questions
What caused ICICI Prudential Life's net profit decline?
The net profit decline of 1.72% to Rs 295.8 crore resulted from a slight dip in new business performance despite an overall increase in gross premium income.
How did the company's gross premium income perform?
The gross premium income grew by 19% to Rs 13,320 crore, driven by consistent growth in the retail segment.
What was the year-on-year profit increase?
Year-on-year, ICICI Prudential reported an 18% increase in net profit compared to the same quarter last year.
What is the current solvency ratio of ICICI Prudential Life?
As of September, the solvency ratio of the company stood at 213.2%, slightly higher than 212.2% a year ago.
How did the market react to the announcement?
Following the announcement, ICICI Prudential Life Insurance shares rose by 3% to Rs 610.65 on the BSE.
