ICICI Prudential Life Q1FY26 Results: PAT up 34%

What ICICI Prudential Life reported for Q1FY26

ICICI Prudential Life Insurance Company reported a 34.2% year-on-year (YoY) rise in profit after tax (PAT) to ₹302 crore for the June quarter (Q1FY26). The company attributed the performance to lower new business strain and higher investment income from shareholders’ funds. While profitability improved, some growth indicators were mixed, with Annualised Premium Equivalent (APE) declining YoY. Value of New Business (VNB) also dipped slightly YoY, but the VNB margin improved.

The update came alongside multiple reported operating indicators, including premium growth, persistency, claims settlement metrics, and solvency. The company’s assets under management (AUM) were reported at ₹3.24 lakh crore as of June 30, 2025, up 5.1% YoY.

Key profitability and business value metrics

PAT for Q1FY26 was reported at ₹302 crore, up from ₹225 crore in the year-ago period. VNB stood at ₹457 crore versus ₹472 crore in Q1FY25, a decline of 3.2% YoY. However, the VNB margin improved to 24.5% from 24% in the prior-year quarter. Another data point in the provided information stated the VNB margin also compared against 22.9% on a sequential (QoQ) basis.

The quarter’s results show a pattern that is common in life insurers: profitability and value metrics can improve even when sales mix or APE softens, especially if product mix shifts, cost ratios improve, or investment income changes.

Premium trends: growth in total premium, pressure on APE

Total premium collections increased 8.1% YoY to ₹8,954 crore for Q1FY26. New business received premium rose 6.4% YoY to ₹4,012 crore, and renewal premium income grew 9.4% YoY to ₹4,942 crore. Net premium income was also reported at ₹8,503 crore, up 8% YoY versus ₹7,874 crore.

APE declined 5% YoY to ₹1,864 crore, following a 9.5% drop in savings APE. This divergence between APE and total premium collections can occur because APE normalises single premiums and reflects changes in product mix, while total premium includes renewal flows and single-premium movements.

Protection and sum assured: where growth was visible

Protection APE grew 15.2% YoY to ₹409 crore, and the retail protection sub-segment grew 24.1% YoY to ₹139 crore. The company also reported that Total New Business Sum Assured grew 36.3% YoY to ₹3.7 lakh crore.

In other disclosed operating indicators across periods, retail protection traction and annuity momentum were referenced, including a reported annuity growth of 14.9% in a commentary note.

Investment income and shareholder fund contribution

Total investment income was reported to have declined to ₹16,892 crore from ₹17,521 crore. Income from unit-linked portfolios fell to ₹14,095 crore from ₹14,818 crore, and the company cited lower unit-linked portfolio returns as a key factor. This decline was partially offset by higher interest income on non-unit-linked investments, which rose to ₹2,797 crore from ₹2,702 crore.

Even with the decline in total investment income as reported, the quarter’s PAT was supported by increased investment income from shareholders’ funds and lower new business strain, as stated in the results commentary.

Costs, operating efficiency, and claims service metrics

The cost-to-premium ratio improved by 280 basis points to 21.2% in Q1FY26. Savings business cost-to-premium ratio improved from 16.8% to 14.1%.

Service metrics were also highlighted. The company reported a claims settlement ratio of 99.6% and an average turnaround time of 1.1 days for individual claims that did not require investigation. Management commentary also noted that over 54% of savings policies were issued on the same day.

Persistency and solvency indicators disclosed

Persistency metrics were presented for different timeframes in the provided data. One set of metrics stated the 13-month persistency rate stood at 86% and the 49-month persistency rate was 69.8%. Another data point stated the 13th-month persistency ratio stood at 80.8%, while the 61st-month persistency ratio improved to 63.4% from 61.6% in the quarter-ago period.

The solvency ratio was reported at 212.3%, described as flat.

Quarterly financial table (QoQ) provided in the data

The provided quarterly table compares “Jun 25” with “Mar 26” on a QoQ basis (figures in ₹ crore except per share values). The table shows a sharp rise in Total Revenue and Total Operating Expense for “Jun 25” versus “Mar 26”, while Operating Income and Net Income are shown lower.

Market reaction and stock price points mentioned

The stock price was reported at different levels in the supplied information. One line noted the stock last traded at ₹530.40. Another reported that at around 2 pm, ICICI Prudential Life was trading near ₹675 on the NSE. A separate reference mentioned shares rising 2.2% to ₹687 on the NSE.

Because these price points appear from different snapshots, they should be read as separate observations rather than a single continuous move.

Why the Q1FY26 print matters for investors tracking life insurers

The Q1FY26 result shows a clear profitability improvement (PAT up 34.2% YoY) alongside steady premium growth (total premium collections up 8.1% YoY). At the same time, APE declined 5% YoY and VNB fell 3.2% YoY, indicating that growth in underlying new business value was not uniform across metrics.

For life insurers, investors typically track a combination of VNB and VNB margin, premium growth, protection mix, persistency, cost ratios, and solvency. In this quarter’s disclosures, the improved VNB margin (24.5%), better cost-to-premium ratio (21.2%), and strong settlement metrics were notable offsets against softer APE and a marginal dip in VNB.

Summary and what to watch next

ICICI Prudential Life reported Q1FY26 PAT of ₹302 crore, up 34.2% YoY, while VNB was ₹457 crore with an improved margin of 24.5%. Premium collections rose 8.1% YoY to ₹8,954 crore, even as APE declined 5% YoY to ₹1,864 crore.

In subsequent quarters, investors will likely track whether protection-led growth sustains, how persistency trends settle across the different tenors disclosed, and whether cost-to-premium improvements remain durable alongside changes in product mix and investment income.