ICICI Prudential Life Sees Sharp Quarterly Dip In Q1 Earnings, But Profit Grows 34 Per Cent YoY

According to the company’s filing with the stock exchange, net profit dropped to Rs 302.08 crore in Q1FY26 (April-June 2025), down from Rs 386.29 crore in the preceding quarter (Q4FY25).

The company attributed its year-on-year profit growth to a combination of lower new business strain and improved investment income from shareholder funds.

Source : Freepik

ICICI Prudential Life Insurance Company reported a significant decline in quarterly earnings, with net profit falling nearly 21.8 per cent for the quarter ended June 30, 2025 (Q1FY26).

According to the company’s filing with the stock exchange, net profit dropped to Rs 302.08 crore in Q1FY26 (April-June 2025), down from Rs 386.29 crore in the preceding quarter (Q4FY25).

The insurer also recorded a substantial fall in net premium income on a quarter-on-quarter basis. The figure came in at Rs 8,503.19 crore for Q1FY26, compared to Rs 16,369.17 crore in the final quarter of the preceding 2024-25 fiscal year— marking a steep drop of approximately 48.06 per cent, reported PTI.

Yearly Performance Shows Growth; VNB Margins Hold Steady

Despite the quarter-on-quarter dip, the insurer delivered a stronger performance on a year-on-year basis. Net profit was up by 34 per cent compared to Rs 225.4 crore reported in Q1FY25. Net premium income also rose 8 per cent from Rs 7,875 crore posted in the corresponding quarter last year.

The value of new business (VNB), an essential metric for life insurance companies, stood at Rs 457 crore, 3.2 per cent lower than the year-ago period. The VNB margin, calculated on an annual premium equivalent (APE) of Rs 1,864 crore, came in at 24.5 per cent.

Commenting on the results, Anup Bagchi, Managing Director and CEO of ICICI Prudential Life, said, “The results reflect the strength and resilience of the company’s business model.” He also noted that the company remains committed to strategies centred around customer focus, simplification of product offerings, expansion of distribution, cost alignment and proactive risk management.

Improved Cost Metrics and Market Update

ICICI Prudential Life made notable strides in cost efficiency. The overall cost-to-premium ratio improved to 21.2 per cent in Q1FY26 from 24 per cent in the same period a year earlier. In the savings business, this ratio dropped further to 14.1 per cent from 16.8 per cent, underscoring ongoing efforts to optimise expenses.

As of June 30, 2025, the company’s assets under management stood at Rs 3.2 lakh crore. The company attributed its year-on-year profit growth to a combination of lower new business strain and improved investment income from shareholder funds. It also highlighted that its extensive distribution reach and comprehensive suite of products supported an 8.1 per cent increase in total premium income during the first quarter of FY26.