💰 Financial Performance

Revenue Growth by Segment

Individual New Business Premium (NBP) grew 11.2% YoY in FY2025, recovering from a 3.7% growth in FY2024. Annual Premium Equivalent (APE) growth drove Value of New Business (VNB) to INR 2,370 Cr in FY2025 from INR 2,227 Cr in FY2024.

Geographic Revenue Split

The company has been operational pan-India since 2001, utilizing a network of 24,300 bank branches and over 1,400 non-bank partnerships to distribute products across the country.

Profitability Margins

Value of New Business (VNB) margin improved to 24.5% in H1 FY2026 from 22.8% in FY2025. Return on Embedded Value (RoEV) stood at 13.1% in FY2025 compared to 14.1% in FY2024. Profit After Tax (PAT) grew 26% YoY to INR 601 Cr in H1 FY2026.

EBITDA Margin

VNB margin of 24.5% in H1 FY2026 reflects core profitability, driven by a higher mix of protection and non-par business and improved product-level profitability through sum assured multiples.

Capital Expenditure

The company continues to invest in creating capacity, digitalization, and improving brand awareness to deliver sustainable VNB growth, though specific INR Cr figures for planned capex were not disclosed.

Credit Rating & Borrowing

Crisil reaffirmed 'Crisil AAA/Stable' on subordinated debt. The company maintains a healthy solvency margin of 2.13 times as of September 30, 2025, well above the regulatory requirement of 1.50 times.

⚙️ Operational Drivers

Raw Materials

Not applicable for life insurance services; primary operational costs are commissions and operating expenses.

Import Sources

Not applicable for life insurance services.

Key Suppliers

Not applicable for life insurance services.

Capacity Expansion

Current distribution capacity includes 50 bank partners with 24,300 branches and 1,400+ non-bank partnerships. Added 90+ non-bank partners in recent periods to expand reach.

Raw Material Costs

Cost to premium ratio reduced to 19.2% in H1 FY2026 from 22.0% in H1 FY2025. Savings line cost to premium ratio decreased to 12.7% from 15.5% in the same period.

Manufacturing Efficiency

Claim settlement ratio was 99.3% for H1 FY2026. Thirteenth and forty-ninth month persistency ratios stood at 85.3% and 70.5%, respectively, as of September 30, 2025.

Logistics & Distribution

Bancassurance APE distribution mix was 30.2% in H1 FY2026, while proprietary channels (agency and direct) contributed 39.2% to overall APE.

📈 Strategic Growth

Expected Growth Rate

11.20%

Growth Strategy

Achieving growth through channel diversification (50 bank partners), increasing sum assured multiples, longer tenure policies, and higher rider attachments. The company is also leveraging a benign base in H2 FY2026 and expected benefits from GST reforms.

Products & Services

Life insurance policies including Unit-Linked Insurance Plans (ULIPs), Retail Protection, Credit Life, Group Term, and Annuity products.

Brand Portfolio

ICICI Prudential Life Insurance.

New Products/Services

Annuity is an emerging product focus due to retirement planning needs. Retail protection continues to be a core focus area alongside credit life and group term business.

Market Expansion

Expanding through 1,400+ non-bank partnerships and 50 bank tie-ups including Standard Chartered, IDFC First, and IndusInd Bank to reduce dependency on any single channel.

Market Share & Ranking

Market share among private players was 11.4% as of September 30, 2025, down from 13.2% as of March 31, 2025.

Strategic Alliances

Exclusive tie-up with ICICI Bank (51% owner) and partnership with Prudential Corporation Holdings Limited (22% owner).

🌍 External Factors

Industry Trends

The industry is shifting towards higher surrender values and GST reforms. Removal of GST on individual policies is expected to push higher sales volumes but squeeze base margins.

Competitive Landscape

Facing intense competition from other private insurers, leading to a market share decline from 13.2% to 11.4% in FY2025.

Competitive Moat

Sustainable moat derived from the 'ICICI' brand name, a 99.3% claim settlement ratio, and a massive distribution network of 24,300 bank branches, providing high switching costs and trust.

Macro Economic Sensitivity

ULIP growth is highly sensitive to equity market buoyancy, which drove the 11.2% YoY NBP revival in FY2025.

Consumer Behavior

Increasing demand for retirement planning is driving growth in the annuity segment, while equity market performance dictates ULIP demand.

⚖️ Regulatory & Governance

Industry Regulations

IRDAI regulations regarding increased surrender values and the removal of GST on individual policies are key factors affecting product design and profitability.

Environmental Compliance

The company published an ESG Report for FY2025, though specific compliance costs were not disclosed.

Taxation Policy Impact

Budget announcement regarding taxation on returns from life policies with premiums > INR 5 lakh per annum impacted FY2024 growth. GST on commissions and operating expenses is an ongoing monitorable.

⚠️ Risk Analysis

Key Uncertainties

The impact of GST on the existing book is estimated to have a 1% negative impact on Embedded Value (EV). Ability to maintain VNB margins amidst rising competition is a key monitorable.

Geographic Concentration Risk

Operates pan-India with no specific regional concentration disclosed; however, distribution is tied to the branch networks of its 50 bank partners.

Third Party Dependencies

High dependency on bancassurance partners for 30.2% of APE, with ICICI Bank being a critical strategic partner.

Technology Obsolescence Risk

Mitigating tech risks through continuous investment in digitalization and technological capabilities to provide superior customer experience.

Credit & Counterparty Risk

Superior liquidity with a debt investment book of INR 1,36,893 Cr, of which 98.28% is in sovereign or 'AAA' rated instruments as of September 30, 2025.