ICICI Prudential Q2: Net profit rises 18% to ₹296 crore, APE declines to ₹2,422 crore YoY

The total annualised premium equivalent (APE) stood at ₹2,422 crore for the quarter under review, a decline of 3% from ₹2,504 crore in Q2 FY25. Its value of new business (VNB) grew marginally to ₹592 crore as against ₹586 crore YoY.

The VNB margin expanded to 24.40% for Q2 FY26 in contrast to 23.40% in the corresponding quarter last year.

The assets under management (AUM) of the company grew by 0.3% year-on-year to ₹3.21 lakh crore in the reporting quarter from ₹3.20 lakh crore on September 30, 2024.

ICICI Pru’s net worth stood at ₹12,727 crore as of September 30, 2025, and the solvency ratio was 213.2% against the regulatory requirement of 150%.

H1 FY26 updates

The life insurance firm’s PAT grew by 26.0% YoY from ₹477 crore in H1 FY25 to ₹601 crore in H1 FY26, primarily driven by higher investment income from shareholders’ funds. Its VNB for the first half of the year was at ₹1,049 crore. Further, with an APE of ₹4,286 crore, the VNB margin stood at 24.5%.

New business received premium grew by 8.7% year-on-year to ₹9,456 crore in the first half of FY26 as compared to ₹8,698 crore in H1 FY25. ICICI Pru’s total premium increased 9.2% YoY to ₹21,251 crore in H1 FY26 from ₹19,459 crore in H1 FY25.

Its claims and benefit payouts (net of reinsurance) decreased by 2.3% to ₹21,039 crore in the first half of FY26 from ₹21,544 crore in H1 FY25 primarily on account of a decrease in surrender/withdrawal claims partly offset by an increase in maturity and death claims.

Key performance highlights

Management commentary

Commenting on the earnings, Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance, said, “We welcome the Indian Government’s recent GST reforms aimed at making life insurance affordable and accessible. We are happy to share that we have passed on the benefit of GST exemption to our customers, enabling them to enjoy savings on their premium payments. We believe these reforms will usher in growth and be value accretive for all our stakeholders, including our customers, our distributors and our company.”

Bagchi noted that early trends show a positive response following the GST exemption on life insurance, with increased website traffic, higher lead volumes, and improved conversion rates across product segments, reflecting stronger customer traction.

“Specifically, the effect of GST exemption has been more pronounced in the retail protection category. For us, protection is a focus area, and notably, the retail protection segment has grown at a CAGR of 31% for the last three years (H1-FY2023 to H1-FY2026). Going forward, we expect the protection segment to grow substantially,” Bagchi added.