ICICI Prudential Life Q1 profit jumps 28%; shares hit 5.5% intraday gain as VNB rises 25%
Stock surges after insurer reports higher profit, improved VNB margins and strong growth in its protection business.
Shares of ICICI Prudential Life Insurance climbed as much as 5.55% on Wednesday to an intraday high of ₹531.95 after the insurer reported a strong set of June quarter earnings, led by higher profitability, expanding margins and robust growth in its protection business.
The company reported a 27.8% year-on-year increase in profit after tax (PAT) to ₹386 crore for the first quarter of FY27, compared with ₹302 crore a year earlier. Total premium rose 14.5% to ₹10,251 crore, while annualised premium equivalent (APE), a key measure of new business sales, increased 14.6% to ₹2,136 crore.
Margins improve on strong new business growth
Value of new business (VNB), a key profitability metric for life insurers, grew 24.9% year-on-year to ₹571 crore, while the VNB margin expanded by 220 basis points to 26.7% from 24.5% a year ago. New business premium increased 21.3% to ₹4,866 crore, reflecting healthy traction across products and distribution channels.
The insurer also reported steady balance sheet metrics, with assets under management (AUM) rising to ₹3.34 lakh crore and a solvency ratio of 225.4%, comfortably above the regulatory requirement.
Protection business drives growth
Growth continued to be led by the protection segment. Protection APE surged 45.7% year-on-year, while retail protection APE jumped 60.4%. Retail new business sum assured increased 45.9%, helping total in-force sum assured grow 17.1% to ₹48.06 trillion.
The company said business growth continued to be supported by a diversified product portfolio and distribution network, while maintaining focus on profitability and prudent risk management.
Board clears proposal to rename company
Separately, the company said its board has approved a proposal to change its name from ICICI Prudential Life Insurance Company Limited to ICICI Life Insurance Limited, subject to regulatory approvals, including that of the Insurance Regulatory and Development Authority of India (IRDAI). The proposed change is aimed at reflecting the strength and legacy of the ICICI brand, while the company said its strategy, operations and governance framework remain unchanged.