ICICI Life Insurance Q2 FY27: Profit Rises About 25% to Rs 374 Crore and Value of New Business Grows About 20%, but Margin Misses Some Estimates

ICICI Life Insurance, formerly ICICI Prudential Life, reported a quarterly profit rise of about 25% for the three months ended September 30, 2026, with growth in new business but a margin that some brokerages said fell short of their estimates. The results were announced on October 13 and covered in the days that followed by Business Standard, Upstox, Kotak Neo and other outlets. Different outlets give slightly different year-earlier comparison figures, so percentages below are described as approximate where the sources disagree.

The headline numbers, according to Business Standard, were these. Net profit was Rs 374.22 crore, up about 25% from Rs 299 crore a year earlier. Net premium income was Rs 13,804 crore, up 16.6% from Rs 11,843 crore. Annualised premium equivalent, or APE, which is a measure of new business sales that scales single and regular premiums to a common annual basis, was Rs 2,799 crore, up about 15.6%. Value of new business, or VNB, which estimates the present value of profits from policies sold in the period, was Rs 712 crore, up roughly 20% to 21% from around Rs 590 crore. The VNB margin, which is VNB divided by APE, was about 25.4%, compared with about 24.4% a year earlier. The company's solvency ratio, a regulatory measure of the capital buffer, was 229.9% compared with 213.2% a year ago.

Costs rose faster than premiums. Business Standard reported expenses of Rs 2,654 crore, up 23.3%, with net commissions of Rs 1,376 crore, up 14.3%. The expenses of management ratio was 18.6%, compared with 17.5% a year earlier. Persistency, which measures how many policyholders keep paying premiums, improved. Business Standard reported that 13th-month persistency on a premium basis was 83%, up from 79.9%, and 61st-month persistency was 62.3%, up from 59.5%. Kotak Neo's summary put the 13th-month figure at 84.5%, so the exact number depends on the measure used.

The first-half figures give a longer view. According to Upstox and Kotak Neo, profit for April to September rose 26.5% to Rs 760 crore. VNB rose 22.3% to Rs 1,283 crore with a margin of about 26%, and APE rose 15.1% to Rs 4,935 crore, with the number of policies up 10.6%. Assets under management were Rs 3.29 lakh crore at the end of September. Total premiums for the half were Rs 24,505 crore, up 15.3%.

What is selling? The company says it continues to focus on protection and annuity products, and Sidharatha Mishra, the chief operating officer, said they remain at the heart of its long-term strategy. In the first half, retail protection APE grew 47.2% to Rs 455 crore and annuity business grew about 50%, according to Business Standard. Total protection APE was Rs 1,155 crore, up 39.5%, according to Kotak Neo, and retail sum assured on new business rose 34.9% to Rs 2.32 lakh crore. For the second quarter alone, Kotak Neo reports protection APE up 51.5%, retail protection up 36.5%, linked savings up 11.8% and non-linked savings up 6.7%, while annuity APE fell 0.6%. The two sources describe annuity growth differently for the half and the quarter, which is why the half-year and quarterly figures should not be compared directly.

The company also reported customer service indicators, which are useful for policyholders. According to Kotak Neo, the claim settlement ratio was 99.3%, an internal high for the first half, and the average settlement time for eligible individual claims that did not need investigation was 1.1 days. It has more than 241,000 advisers and more than 27,000 bank branches distributing its products through bancassurance, with over 1,600 partnerships. These are company-reported figures and settlement ratios are measured on the insurer's own basis, so comparing insurers requires looking at IRDAI's published data.

How did the market and analysts react? Share price moves were mixed across reports. Kotak Neo said the stock closed at Rs 447 on October 13, down 3.5%, while Upstox reported it rising as much as 2.95% to Rs 460.20 on October 14. Analysts' views, summarised by Upstox, were mixed. Nomura said the Q2 margin of 25.4% missed its estimate of 26.7%, and noted stronger momentum in non-participating policies and expectations that agency channels will outgrow the company in coming years. JP Morgan said VNB growth was strong year on year but below its estimates, and that the margin rose 100 basis points from a year earlier but fell 129 basis points from the previous quarter, mainly because of lower protection sales. Bernstein said the margin expansion came from a favourable mix shift, with strength in retail protection, annuities and the partnership channel. Goldman Sachs also credited product mix, stayed cautious on top-line forecasts and said the insurer has levers for medium-term VNB growth. Jefferies said the margin was below expectations because of a higher group funds mix, noted that growth was led by group business and cut its FY27 to FY29 VNB estimates by 2% because of a lower retail protection mix.

What should customers and investors take from this? For customers, the message is that insurers are leaning on protection and annuity products, which suits people looking for life cover and retirement income, but that product mix changes quickly and the most profitable products for the insurer are not always the best fit for the buyer. Compare the premium and benefits of any term plan across several insurers, check the claim settlement record on IRDAI's website and read the fine print on exclusions. For investors, the debate is about whether the margin can hold as the mix shifts, and whether growth in retail protection can offset a rising share of lower-margin group business.

These results are company-reported and analyst commentary is opinion, not a recommendation to buy or sell any security. Readers who want exact figures should consult the insurer's filings with the stock exchanges.