ICICI Prudential Life Insurance Co. reported profit after tax of ₹1,600 crore for the year ended March 31, 2026, up 34.6% from ₹1,189 crore a year earlier. The board approved the FY2026 results and proposed a final dividend of ₹1.65 per share. The company’s value of new business (VNB) for FY2026 was ₹2,629 crore, an increase of 10.9% year-on-year, translating into a VNB margin of 24.7%. Embedded value rose 10.5% over the year to ₹52,989 crore as of March 31, 2026, while return on embedded value stood at 11.9%.
Managing director and CEO Anup Bagchi said: “FY2026 marks a landmark year as we celebrate 25 years of serving over 20 crore customers with trust and commitment. The total value of life cover stood at ₹46.11 lakh crore at March 31, 2026, highlighting the strong trust our customers have placed in us over the years.” Bagchi added that the company “successfully navigated the impacts of a challenging global macro environment this year.” The bottom line was supported by investment income from shareholders’ funds, including a ₹114 crore gain from the sale of its entire stake in ICICI Pension Fund Management Company Limited. Excluding this transaction, profit after tax grew 25% year-on-year.
Total premium income increased 8.5% to ₹53,125 crore in FY2026. New business received premium rose 9.9% to ₹24,810 crore for the full year, while in the fourth quarter it was ₹9,719 crore, 30.6% higher than in the same period of FY2025. Annualized premium equivalent (APE) reached ₹10,641 crore, with protection APE at ₹1,906 crore, up 16.4% from the previous year. The solvency ratio as at March 31, 2026, was 227.3%, compared with the regulatory minimum requirement of 150%. Assets under management stood at ₹3.14 lakh crore.
Growth in the retail protection segment was a notable feature of the year. Retail protection APE increased 32.3% year-on-year to ₹791 crore in FY2026. In the second half of the financial year, retail protection APE rose 50.9% versus the same period a year earlier, which the company attributed partly to the “0% GST reform” on certain products introduced in September 2025. Retail new business sum assured for FY2026 was ₹4.50 lakh crore, up 35.3% year-on-year. The company reported that retail new business sum assured grew 49.5% year-on-year in the second half, driving the full-year outcome.
Total in-force sum assured, representing the aggregate life cover on the company’s books, increased 16.9% to ₹46.11 lakh crore as at March 31, 2026, from ₹39.43 lakh crore a year earlier. On expenses, the cost-to-premium ratio for the savings line of business declined by 40 basis points to 12.1% in FY2026, following measures implemented over the past two years to align costs with the product mix. This reduction was achieved after accounting for the loss of input tax credit from Sept. 22, 2025. The overall cost-to-premium ratio was 18.2%, slightly above 18.1% in FY2025. Product mix by APE in FY2026 comprised 48% linked, 20% non-linked, 6% annuity, 18% protection, and 8% group funds. The distribution mix by APE shifted modestly, with agency accounting for 25%, direct 14%, bancassurance 30%, partnership distribution 13%, and group business 18%.
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Bagchi pointed to product development and digital initiatives as areas of emphasis. He mentioned the recent launch of “ICICI Pru Global Wealth Multiplier,” a US dollar-denominated plan under the GIFT City framework that provides access to global funds with life cover, and “ICICI Pru Smart Kid 360,” a guaranteed child savings product offering flexible payouts and premium waiver features. “We remain committed to delivering superior value to our customers,” he said, adding that the company continues to use “economies of scale, technology, and digital solutions to improve efficiencies.” He said ICICI Prudential aims to build “a future-ready organisation that continues to adapt thoughtfully, act with agility, and create meaningful impact by expanding access to insurance and deliver long-term sustainable value to all stakeholders.” The insurer reported a claim settlement ratio of 99.3% for FY2026, with an average turnaround time of 1.1 days for non-investigated individual death claims. Thirteenth‑month and 49th‑month persistency ratios were 84.5% and 71.8%, respectively.
ICICI Prudential’s results come as India’s life insurance market continues to expand and draw attention from Asian and global carriers. According to GlobalData, the Indian life market is projected to grow from INR9.2 trillion (US$110.2 billion) in gross written premiums in 2024 to INR14.6 trillion (US$170.0 billion) in 2029, implying a compound annual growth rate of 9.6%. Gross written premiums are expected to reach INR10.1 trillion (US$120.5 billion) in 2025.
GlobalData links this growth to rising financial literacy, increased use of digital channels, and greater demand for whole life and term products, particularly among younger customers. Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said: “The Indian life insurance sector is evolving rapidly, with favourable regulatory developments and a notable increase in participation from women and marginalized communities.” He also pointed to targeted offerings and initiatives such as “Bima Sakhi Yojana” that are intended to extend insurance awareness and usage in rural areas.
India’s life insurance penetration was 3.8% in 2024, below levels in some East Asian markets such as Hong Kong, South Korea, and Japan. Policymakers and regulators have flagged measures that could influence future growth, including a proposal to raise the foreign direct investment cap in insurance from 74% to 100% and to reduce the Goods and Services Tax rate on life and health insurance. The Insurance Regulatory and Development Authority of India’s (IRDAI) universal insurance coverage by 2047 programme, including digital infrastructure such as AI‑enabled platforms and the Bima Sugam portal, is designed to simplify distribution and servicing. Sahoo said: “The outlook for the life insurance market in India remains positive, with growth driven by robust economic expansion, heightened financial literacy, and evolving consumer preferences,” noting that microinsurance initiatives are likely to expand the insured population.
