ICICI Prudential Life Insurance shares fell around 3% following the release of its financial results for the quarter ended June 30, 2025. As of 9:24 AM, the shares were trading 3.37% lower at Rs 647.05.
While the insurer reported a strong 34.2% jump in net profit to ₹302 crore compared to ₹225 crore in the same quarter last year, investors seemed concerned about the dip in key growth metrics such as Annualized Premium Equivalent (APE) and Value of New Business (VNB).
APE for the quarter came in at ₹1,864 crore, showing a 5% year-on-year decline from ₹1,960 crore. VNB too saw a slight drop, falling 3% to ₹457 crore from ₹470 crore a year ago. However, the margin on new business improved slightly to 24.5% from 24% in the year-ago quarter, indicating some resilience in overall profitability.
Despite the moderation in APE and VNB, the company saw an 8.1% year-on-year growth in total premium, which rose to ₹8,954 crore in Q1 FY26 from ₹8,284 crore last year. New business premium also increased by 6.4% to ₹4,012 crore, reflecting continued momentum in policy sales.
What stood out was the company’s performance in the protection segment. Protection APE grew by 15.2% and retail protection APE surged 24.1%, indicating strong demand for risk-focused insurance products.
The insurer also posted impressive growth in its new business sum assured (NBSA), which rose 36.3% to ₹3.71 lakh crore. Retail NBSA increased by 31.5% to ₹77,800 crore, while the total in-force sum assured expanded by 17.1% to ₹41.1 lakh crore, underscoring the company’s expanding coverage base.
Operationally, ICICI Prudential maintained a strong grip on costs. The cost-to-total premium ratio improved to 21.3% from 24% a year ago. Cost efficiency in the savings business also improved, with the ratio dropping to 14.1% from 16.8%. Persistency trends remained stable, with the 13th-month ratio holding at 86% and the 49th-month ratio at 69.8%, reflecting consistent customer retention.
Assets under management grew by 5.1% year-on-year to ₹3.24 lakh crore, and the solvency ratio stood at a healthy 212.3%, well above the regulatory minimum of 150%. The company also highlighted a balanced product mix across linked, non-linked, protection, annuity, and group fund segments, showing a focus on diversified growth.
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