ICICI Prudential Life Insurance Company Ltd has announced its financial results for the second quarter of the financial year 2025–26 (Q2 FY26) on October 14, 2025, reporting a steady performance backed by healthy premium growth and operational efficiency.
The life insurer posted a consolidated net profit of ₹296 crore, marking an 18% year-on-year (YoY) rise from ₹250.99 crore in Q2 FY25. The growth was primarily supported by a higher share of non-market-linked products and lower expenses, reflecting a shift towards more stable, traditional insurance offerings. Sequentially, the profit saw a marginal decline from ₹300.99 crore reported in the previous quarter.
Strong Premium Growth and Balanced Product Mix
During the quarter, ICICI Prudential Life’s net premium income rose 10.1% YoY to ₹11,843 crore, compared with ₹10,754 crore in the same period last year. On a sequential basis, the income surged 39%, highlighting stronger customer demand and renewed traction in the insurance segment.
The company’s total premium for the first half of FY26 (H1 FY26) reached ₹21,251 crore, reflecting a 9.2% YoY increase. Its annualised premium equivalent (APE) stood at ₹4,286 crore, recording a two-year compound annual growth rate (CAGR) of 10.3%.
In line with industry trends, ICICI Prudential Life has continued to rebalance its portfolio by focusing on non-market-linked products amid volatile equity markets and uncertain macroeconomic conditions. These non-linked products accounted for 21.8% of the product mix at the end of September 2025, compared with 18.1% a year earlier. Meanwhile, contributions from market-linked products fell to 48.1% from 51.6% in the same period last year.
Cost Efficiency Boosts Profitability
The insurer’s expenses during the quarter declined 6% YoY to ₹2,152 crore from ₹2,289.89 crore in Q2 FY25. Lower advertising and employee-related costs contributed to this improvement, reflecting efficient cost management. Although expenses increased 13% sequentially from ₹1,891.48 crore, the overall operational discipline remained strong.
The company’s assets under management (AUM) stood at ₹3.21 trillion as of September 30, 2025, underscoring its strong financial base and steady inflows.
Value of New Business and Margin Improvement
ICICI Prudential Life’s value of new business (VNB) for the quarter rose to ₹5.92 billion, up from ₹5.86 billion a year earlier. The VNB margin for the half-year ended September 2025 improved to 24.5%, compared to 23.7% a year ago, indicating stronger profitability from new policies.
However, the annualised premium equivalent for the quarter stood at ₹24.22 billion, slightly lower than ₹25.04 billion in the corresponding period last year, suggesting a modest slowdown in new business inflows despite higher margins.
Sectoral Reforms and Growth Outlook
A key development during the quarter was the government’s decision to reduce the Goods and Services Tax (GST) on health and life insurance from 18% to nil under its new tax reforms. While the impact of this reform is expected to be visible in Q3 FY26, early signs indicate rising consumer interest.
Retail protection remains a key focus area, with the segment growing at a 31% CAGR over the past three years. The New Business Sum Assured rose 19.3% YoY to ₹6.77 trillion in H1 FY26, while the total in-force sum assured reached ₹42.16 trillion as of September 30, 2025.
Market Performance
Following the earnings announcement, shares of ICICI Prudential Life Insurance rose as much as 3% before closing 1.3% higher at ₹597.3 apiece on the BSE, outperforming the broader Nifty 50 index, which declined by 0.2% on the same day.
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Conclusion
ICICI Prudential Life Insurance’s Q2 FY26 performance highlights a healthy mix of premium growth, cost efficiency, and improved profitability. The company’s emphasis on expanding non-market-linked products, coupled with regulatory tailwinds such as the GST exemption, positions it well for sustained growth in the coming quarters.
As India’s insurance sector continues to evolve, driven by product diversification and greater financial inclusion, ICICI Prudential Life appears well-placed to capture emerging opportunities in the life insurance landscape.
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