This article first appeared on GuruFocus .
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Retail APE Growth:9.9% year-on-year in Q3 FY 2026.
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Overall APE Growth:3.6% year-on-year in Q3 FY 2026.
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Retail Protection Segment Growth:40.8% year-on-year in Q3 FY 2026.
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Retail Sum Assured Growth:51.6% year-on-year in Q3 FY 2026.
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VNB for Q3 FY 2026:INR 6.15 billion.
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VNB for 9 Months FY 2026:INR 16.64 billion with a margin of 24.4%.
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Cost-to-Premium Ratio:Reduced to 19.3% for 9 months FY 2026 from 19.8% in the previous year.
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13-Month Persistency:84.4%.
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Claim Settlement Ratio:99.3% with an average turnaround time of 1.1 days for non-investigated individual death claims.
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PAT Growth:19.6% year-on-year to INR 3.9 billion in Q3 FY 2026 and 23.5% year-on-year to INR 9.92 billion for 9 months FY 2026.
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Solvency Ratio:214.8% as of December 31, 2025.
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Assets Under Management:Grew by 6.5% year-on-year to INR 3.31 trillion as of December 31, 2025.
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Warning! GuruFocus has detected 2 Warning Sign with BOM:540133.
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Release Date: January 13, 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 ) celebrated 25 years of service, trusted by over 20 crore Indians.
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Retail APE grew by 9.9% year-on-year in Q3 FY 2026, with a 2-year CAGR of 15.2%.
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Retail Protection segment registered a 40.8% year-on-year growth, with retail sum assured growing by 51.6%.
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Cost-to-premium ratio improved to 19.3% from 19.8% in the previous year, indicating better cost management.
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Claim settlement ratio stood at 99.3% with an average turnaround time of 1.1 days for non-investigated individual death claims.
Negative Points
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Annuity business declined by 16.4% in Q3 on the back of 50% growth in the previous year.
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Group funds business declined by 43.5% year-on-year in Q3, highlighting volatility in this segment.
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Persistency challenges were noted in specific channel and product pockets, with 13-month persistency at 84.4%.
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The input tax credit withdrawal impacted expenses, although partially offset by other factors.
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Group business declined by 20.1% year-on-year in Q3, indicating challenges in this segment.
Q & A Highlights
Q: Can you explain the impact of the new labor law on VNB margins and whether this has been priced into the current quarter's financials? A: Yes, the impact of the labor law has been accounted for, with a charge of INR 11 crores. This is relatively small due to our internal policies offsetting the requirements of the new labor code. There is no residual impact expected for the future from this pool. (Dhiren Salian, CFO)
Q: What are the reasons behind the wide movement in the 61st-month persistency bucket? A: Changes in the measurement of the 61st-month persistency are due to regulatory changes in product regulations. Unit-linked policies now remain active longer, which depresses persistency figures temporarily. However, the assets under management continue to stay with us. (Dhiren Salian, CFO)
Q: Are there any expected distribution reforms or other regulatory changes in the insurance sector? A: Currently, there are no specific updates on distribution reforms. We await inputs from the regulator or committees. (Dhiren Salian, CFO)
Q: How is the company addressing the challenges in specific channel and product pockets where persistency ratios are lower than expected? A: Corrective actions have been initiated to improve persistency levels, and these are being monitored closely. We aim to reach 85% and above in the mid-part of next year. (Dhiren Salian, CFO)
Q: What is the rationale behind transferring the pension management subsidiary to ICICI Bank? A: The transfer aligns with the bank's strategy and allows for synergy by integrating the pension fund management as a direct subsidiary of the bank. This move was based on an independent valuation. (Dhiren Salian, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
