ICICI Prudential Life Insurance posted a solid set of numbers for the third quarter of FY26, helping the stock gain around 2% on January 14, 2026. Despite muted premium growth, the insurer recorded a sharp improvement in profitability, supported by healthier investment income and better operating leverage.

Profitability boosted by investment income

The company reported a 19.6% year-on-year increase in profit after tax, which rose to ₹390 crore in Q3 FY26 from ₹326 crore in the same quarter last year. For the nine-month period of FY26, net profit stood at ₹992 crore, up 23.5% YoY, aided primarily by higher investment returns from shareholders’ funds.

Rise in VNB and margin expansion

The value of new business (VNB) for Q3 FY26 was ₹615 crore. For the nine months of FY26, VNB increased to ₹1,664 crore, with VNB margins improving to 24.4%, compared with 22.8% a year earlier. The margin expansion was driven by an improved product mix and disciplined cost management.

Growth was led by the protection business. During Q3 FY26:

• Retail protection APE increased 40.8% YoY
• Retail new business sum assured rose 51.6% to ₹1.24 lakh crore

Overall APE showed moderate growth of 3.6% YoY to ₹2,525 crore, while total premium income declined 3.4% YoY to ₹12,226 crore, reflecting softer trends in some segments.

Strong financial position

ICICI Prudential Life Insurance continues to demonstrate financial strength. As of December 31, 2025:

• Assets under management (AUM) rose 6.5% YoY to ₹3.31 lakh crore
• Net worth increased 15.7% to ₹13,470 crore
• Solvency ratio stood at 214.8%, well above the regulatory requirement of 150%

Persistency indicators showed mixed movement. The 13th-month persistency ratio was 84.4%, while the 49th-month persistency came in at 71.3%, signalling stress in select distribution channels and product categories.

Overall, the results underline improved profitability, resilience in protection business, and a solid capital position.

Summary

ICICI Prudential Life Insurance reported a 19.6% YoY rise in Q3 FY26 profit after tax to ₹390 crore, driven mainly by higher investment income. VNB grew to ₹615 crore in Q3 and ₹1,664 crore for nine months, with margins improving to 24.4%. Protection business saw strong traction, although total premium income declined 3.4% YoY. The insurer maintained robust financial health with ₹3.31 lakh crore AUM, higher net worth, and a 214.8% solvency ratio, while persistency ratios showed mixed trends.

This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.

Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.