ICICI Prudential Q3 profit jumps 20% to ₹390 crore as margins expand
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ICICI Prudential Life Insurance on Tuesday reported a robust 19.6% year-on-year (YoY) increase in its standalone net profit for the third quarter ended December 31, 2025. The private insurer posted a net profit after tax (PAT) of ₹390 crore for Q3-FY2026, compared to ₹326 crore in the corresponding period of the previous year.
For the first nine months of the current fiscal (9M-FY2026), the company’s net profit surged 23.5% to ₹992 crore. This growth was primarily fuelled by higher investment income from shareholders’ funds, which offset the impact of moderated premium growth.
Profitability metrics & VNB growth
The value of new business (VNB), a critical barometer for the profitability of life insurers, climbed to ₹615 crore for the December quarter. For the nine-month period ended December 31, 2025, the VNB reached ₹1,664 crore, up 5.7% YoY.
The company also reported a healthy expansion in its VNB margins, which rose to 24.4% in 9M-FY2026, up from 22.8% in the previous year. This 160-basis-point expansion means a shift toward a more profitable product mix.
Segmental performance and premiums
While overall growth appeared measured, the retail protection segment remained a bright spot. Retail protection annualised premium equivalent (APE) witnessed a 40.8% YoY jump during the third quarter. Furthermore, the retail new business sum assured surged 51.6% to reach ₹1.24 lakh crore.
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Total APE for the quarter stood at ₹2,525 crore, up 3.6% YoY. However, total premium for the quarter saw a marginal dip of 3.4%, settling at ₹12,226 crore. Despite this quarterly dip, the company's nine-month total premium grew by 4.2% to ₹33,477 crore.
The insurer's balance sheet remains strong, with assets under management (AUM) growing to ₹3.31 lakh crore as of December 31, 2025. The company also maintained a solid solvency ratio of 214.8%, comfortably above the regulatory mandate of 150%.
The shares of ICICI Prudential Life Insurance ended 0.19% higher at ₹682.05 apiece on the national stock exchange on January 13. The company's stock has risen close to 8% in the past one year, as compared to the benchmark Nifty50 index which rose close to 12% during the same period.