This article first appeared on GuruFocus .
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Value of New Business (VNB):INR26.29 billion, with a growth of 10.9% year-on-year.
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VNB Margin:24.7%, up from 22.8% in FY 2025.
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Profit After Tax (PAT):INR16 billion, a 34.6% increase year-on-year.
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Retail New Business Sum Assured:INR4.5 trillion, with 50.9% year-on-year growth in retail protection in H2 2026.
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New Business Premium:INR248.10 billion, a year-on-year growth of approximately 10%.
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Claim Settlement Ratio:99.3% with an average turnaround time of 1.1 days.
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Solvency Ratio:227.3%, well above the regulatory requirement of 150%.
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13-Month Persistency:84.5%.
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Assets Under Management (AUM):INR3.13 trillion as of March 31, 2026.
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Embedded Value (EV):INR529.89 billion, a 10.5% increase year-on-year.
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Annual Premium Equivalent (APE):INR106.41 billion, a 2.2% year-on-year growth.
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Protection Mix:Increased by 2.2% year-on-year to 17.9%.
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Retail Sum Assured Growth:35% year-on-year.
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Return on Embedded Value (ROEV):11.9% for FY 2026.
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Release Date: April 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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ICICI Prudential Life Insurance Co Ltd ( BOM:540133 ) achieved a VNB growth of 10.9% in FY 2026, with a VNB margin increase to 24.7% from 22.8% in FY 2025.
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The company reported a strong PAT growth of 34.6% year-on-year to INR16 billion, driven by higher investment income.
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Retail protection segment saw significant growth, with a 50.9% year-on-year increase in retail protection in H2 2026.
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The company maintained an industry-leading claim settlement ratio of 99.3%, with an average turnaround time of 1.1 days.
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ICICI Prudential Life Insurance Co Ltd ( BOM:540133 ) reported a solvency ratio of 227.3%, well above the regulatory requirement of 150%.
Negative Points
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The agency channel APE declined due to a high base of linked and annuity businesses in the previous year.
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Persistency rates showed a decline, particularly in the 13th month persistency, which was impacted by annuity products.
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The company faced challenges in the MFI segment at the start of the year, although recovery was noted from quarter three onwards.
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Despite growth in protection, the overall APE growth was modest at 2.2% year-on-year, indicating slower growth in other segments.
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The company experienced a negative persistency variance of INR2.64 billion, impacting future earnings due to withdrawals.
Q & A Highlights
Q: How should we think about growth for the upcoming year, given the current trends and last year's performance? A: Dhiren Salian, CFO, mentioned that while the current environment is volatile, the company will continue to focus on granular customer segmentation and product mix to drive growth. The split between par and non-par products is roughly 2:1, and current assumptions on persistency and other factors have been incorporated into the baseline for future projections.
Q: How has customer behavior changed post the Middle East conflict, and what are the trends in demand for non-par policies and ULIPs? A: Dhiren Salian noted that the conflict has impacted new business sales, particularly in March. The demand has been affected across the board except for protection products. The company is observing trends and will adjust strategies as needed.
Q: What are the impacts of the Ind AS transition, and how will it affect financial reporting and capital position? A: The company is seeking a one-year forbearance for Ind AS implementation due to pending clarity on certain inputs. The current solvency basis will be maintained, and the transition is expected to provide better comparability with global standards.
Q: Can you provide insights into the persistency challenges and how they are being addressed? A: Persistency issues are being addressed by evaluating product and channel cohorts. The company continuously reviews and adjusts its strategies to improve persistency, focusing on fixing underperforming segments and enhancing customer propositions.
Q: How is the company planning to revive growth in the agency channel, and what are the challenges faced? A: Anup Bagchi, CEO, stated that the agency channel is being revitalized through a micro-market-led strategy. Despite past base effects, the company is optimistic about future growth and is focusing on granular distribution strategies to enhance performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
