ICICI Life Insurance Limited, formerly ICICI Prudential Life Insurance Company, reported a 25% year-on-year increase in profit after tax (PAT) to ₹374 crore for the second quarter of FY27. For the first half of the financial year, profit rose 26.5% to ₹760 crore, supported by higher premium income, improved investment income and stronger profitability from its existing policyholder portfolio.
The insurer’s net premium earned increased 16.5% year-on-year to ₹13,804 crore in the July-September quarter, compared with ₹11,843 crore a year earlier. Meanwhile, its new business performance showed continued growth in premiums and value of new business (VNB), an important measure of the expected profitability of policies sold during a period.
Key takeaways
- Q2 FY27 profit: ₹374 crore, up approximately 25% year-on-year.
- H1 FY27 profit: ₹760 crore, up 26.5% from ₹601 crore.
- Q2 net premium earned: ₹13,804 crore, an increase of 16.5%.
- H1 total premium income: ₹24,505 crore, up 15.3%.
- H1 new business premium: ₹11,821 crore, up 25%.
- H1 value of new business: ₹1,283 crore, up 22.3%.
- H1 VNB margin: 26%, compared with 24.5% a year earlier.
- Claim settlement ratio: 99.3% for the first half of FY27.
- Solvency ratio: 229.9% as of September 30, 2026.
ICICI Life Q2 FY27 Results: Profit Rises to ₹374 Crore
ICICI Life’s quarterly performance reflects growth in premium income and improved earnings from its insurance business. Profit after tax increased from ₹299 crore in the September quarter of the previous financial year to ₹374 crore in Q2 FY27.
The first-half performance was similarly strong. Net profit for April-September FY27 reached ₹760 crore, compared with ₹601 crore in the corresponding period of FY26.
The growth in profit is important because life insurers must balance business expansion with the costs of acquiring policies, servicing customers, managing claims and maintaining sufficient capital to meet future obligations.
For ICICI Life, the reported improvement in earnings was supported by higher shareholders’ investment income and improved surplus generation from its existing policyholder portfolio.
However, quarterly profit alone does not provide a complete picture of an insurer’s performance. Premium growth, the profitability of newly issued policies, operating expenses, claims experience and capital adequacy also influence its financial position.
ICICI Life Q2 and H1 FY27 Financial Performance
| Financial metric | Q2 FY27 / H1 FY27 | Year-on-year performance |
|---|---|---|
| Q2 profit after tax | ₹374 crore | Up approximately 25% |
| H1 profit after tax | ₹760 crore | Up 26.5% |
| Q2 net premium earned | ₹13,804 crore | Up 16.5% |
| H1 net premium earned | ₹23,553 crore | Up 15.8% |
| H1 total premium income | ₹24,505 crore | Up 15.3% |
| H1 new business premium | ₹11,821 crore | Up 25% |
| H1 annualised premium equivalent | ₹4,935 crore | Up 15.1% |
| H1 value of new business | ₹1,283 crore | Up 22.3% |
| H1 VNB margin | 26% | Up 150 basis points |
Note: Q2 refers to July-September 2026, while H1 covers April-September 2026. The figures represent different reporting periods and should not be compared as if they cover the same duration.
Premium Income Growth Supports the Business
Net premium earned increased to ₹13,804 crore in Q2 FY27 from ₹11,843 crore in the year-ago quarter. For the first six months of FY27, the figure reached ₹23,553 crore, representing 15.8% year-on-year growth.
Total premium income for the first half rose 15.3% to ₹24,505 crore.
Premium income is a central indicator of an insurance company’s business activity. It reflects premiums earned from policies and helps indicate the scale of its insurance operations. However, higher premiums do not automatically translate into proportionately higher profits because insurers must account for expenses, claims, policy benefits and other financial items.
Growth in premium income can come from several sources, including new policy sales, renewals, changes in product mix and higher premiums per policy. The figures reported for ICICI Life show an expanding premium base, although the precise contribution of each factor requires a more detailed breakdown.
For insurers, sustainable growth also depends on attracting customers whose policies generate acceptable long-term returns relative to the risks and costs involved.
New Business Premium Rises 25% in H1 FY27
ICICI Life’s new business premium increased 25% year-on-year to ₹11,821 crore in the first half of FY27, compared with ₹9,456 crore in the corresponding period last year.
Annualised premium equivalent (APE), a standard insurance industry measure used to compare new business sales, increased 15.1% to ₹4,935 crore from ₹4,286 crore.
The two measures provide different perspectives on business growth. New business premium reflects premium received from newly issued policies, while APE standardises the annual value of regular premiums and a portion of single premiums to make sales performance more comparable.
Growth in new business can strengthen an insurer’s future earnings base, but the quality and profitability of those policies matter as much as the amount sold.
A company could increase sales by offering products with lower margins or by spending more on distribution and customer acquisition. Consequently, premium growth is best assessed alongside measures such as VNB and the VNB margin.
Value of New Business Rises to ₹1,283 Crore
ICICI Life’s value of new business increased 22.3% year-on-year to ₹1,283 crore in H1 FY27.
VNB estimates the expected future profit from policies sold during a particular period, after accounting for relevant expenses and assumptions. It is widely used to assess the profitability of new business written by life insurers.
The company’s VNB margin improved to 26% from 24.5% a year earlier, an expansion of 150 basis points.
The increase indicates that the expected profitability of new business improved relative to the annualised premium equivalent generated during the period. This is an important distinction because selling more policies does not necessarily create more value if margins deteriorate.
For ICICI Life, the simultaneous growth in VNB and its margin suggests that new business expansion was accompanied by improved expected profitability.
Nevertheless, VNB is an estimate based on assumptions about factors such as mortality, persistency, expenses and investment returns. Actual experience can differ from those assumptions, so the metric should not be treated as guaranteed future profit.
Protection and Annuity Products Drive Growth
The insurer reported particularly strong growth in protection and annuity products during the first half.
| Product category | H1 FY27 performance |
|---|---|
| Overall protection APE | ₹1,155 crore, up 39.5% |
| Retail protection APE | ₹455 crore, up 47.2% |
| Annuity APE | ₹324 crore, up 50% |
| Savings APE | ₹3,455 crore, up 6.6% |
Protection products provide financial benefits to beneficiaries if the insured person dies during the policy term, subject to the policy’s conditions. Annuity products are designed to provide income payments, often during retirement.
Growth in these categories suggests that ICICI Life is expanding in products serving different financial needs. Protection insurance addresses financial security for families, while annuities can help customers plan for retirement income.
The product mix matters because different insurance products carry different risk profiles, capital requirements, distribution costs and expected margins.
The insurer’s future performance will depend partly on whether it can sustain growth in these categories while maintaining appropriate pricing and underwriting standards.
Operating Costs Remain an Important Factor
Despite the improvement in profitability measures, expenses remain an important consideration.
ICICI Life’s first-half cost-to-premium ratio, excluding goods and services tax (GST), declined by 30 basis points year-on-year to 18.3%. For savings business, the corresponding ratio fell by 90 basis points to 11.6%.
Including GST, however, the overall cost-to-premium ratio increased by 80 basis points to 20%.
The company attributed part of the pressure to GST costs arising from the disallowance of input tax credit on retail business, alongside higher business support, development and wage expenses.
The difference between the ratios illustrates why tax treatment matters when analysing an insurer’s operating efficiency. A lower cost ratio excluding GST can indicate better control over certain expenses, while the ratio including GST captures additional costs affecting the business.
For insurers, distribution and customer acquisition are significant expenses. Maintaining efficiency as premium income grows can help support profitability, but cost reductions must not compromise customer service, claims handling or the quality of policy sales.
Claim Settlement Ratio Stands at 99.3%
ICICI Life reported a claim settlement ratio of 99.3% for H1 FY27. It also reported an average turnaround time of 1.1 days for non-investigated individual death claims.
During the first half, the company settled ₹2,627 crore in death claims and paid ₹8,634 crore in maturity and survival benefits.
Claims performance is a key measure of an insurer’s service delivery because life insurance is intended to provide financial support when policyholders or their beneficiaries need it.
However, a claim settlement ratio should be interpreted alongside the number and value of claims, exclusions, repudiations, pending cases and the time taken to resolve disputed claims. A high ratio by itself does not mean every claim will be paid, as outcomes depend on policy terms and individual circumstances.
The reported turnaround time also applies specifically to non-investigated individual death claims. It should not be interpreted as the processing time for every type of claim.
Solvency Ratio and Financial Strength
ICICI Life reported a solvency ratio of 229.9% as of September 30, 2026, compared with the regulatory requirement of 150%.
The solvency ratio measures an insurer’s available capital relative to the capital it is required to maintain against its risks. It helps regulators and policyholders assess whether the insurer has an adequate financial buffer to meet its obligations.
A ratio above the regulatory minimum provides a cushion against adverse experience. However, solvency should be considered alongside the insurer’s risk exposure, investment portfolio, liabilities and future business growth.
The company also reported assets under management of ₹3.29 lakh crore, up 2.3% year-on-year, and embedded value of ₹56,669 crore, an increase of 12.2%.
Embedded value estimates the value of shareholders’ interests in the existing business, including expected future earnings under specified assumptions. It differs from reported net profit and from the market value of the company’s shares.
Together, these measures provide a broader view of the insurer’s capital position, investment scale and estimated value of its existing insurance business.
ICICI Prudential Life Renamed ICICI Life Insurance
The company has changed its name from ICICI Prudential Life Insurance Company Limited to ICICI Life Insurance Limited.
The rebranding marks a change in the company’s corporate identity, while its reported strategy continues to emphasise protection and annuity products.
The insurer has highlighted the opportunity to address India’s underpenetrated insurance market, particularly in areas related to financial protection and retirement planning.
Expanding access to suitable insurance products could support long-term business growth. However, the opportunity depends on affordability, customer awareness, distribution reach, policy persistency and the industry’s ability to maintain trust.
What to Watch in the Coming Quarters
ICICI Life’s Q2 FY27 results show growth in profit, premium income and expected new business profitability. The next test will be whether the insurer can sustain these trends while managing costs and maintaining capital strength.
Investors and industry observers will likely focus on new business growth, VNB margins, product mix, operating expenses and claims experience in subsequent quarters. The effect of GST-related costs on reported operating efficiency will also remain relevant.
The company will need to balance expansion with disciplined pricing and risk management. Faster premium growth is valuable only when it supports sustainable profitability and the insurer can continue meeting its obligations to policyholders.
For now, the first-half figures indicate that ICICI Life has expanded its business while improving its reported VNB margin. Future results will show whether the improvement continues as market conditions, customer demand and operating costs evolve.
The Bigger Picture
ICICI Life’s results highlight the importance of looking beyond headline profit growth when assessing a life insurer. The 25% increase in quarterly profit and 26.5% rise in first-half profit provide a positive earnings picture, while growth in VNB and its margin offers insight into the economics of new policies.
At the same time, operating costs, GST treatment, claims performance and solvency remain essential parts of the assessment. The company’s ability to maintain profitability while growing its protection and annuity businesses will be important to its longer-term performance.
Frequently Asked Questions
1. What was ICICI Life’s Q2 FY27 profit?
ICICI Life reported profit after tax of ₹374 crore for Q2 FY27, up approximately 25% from ₹299 crore in the same quarter last year.
2. What was ICICI Life’s H1 FY27 profit?
The company’s profit after tax increased 26.5% year-on-year to ₹760 crore for the six months ended September 30, 2026.
3. What is ICICI Life’s VNB margin?
ICICI Life reported an H1 FY27 value of new business margin of 26%, compared with 24.5% in the corresponding period last year. VNB margin measures expected new-business profitability relative to annualised premium equivalent.
4. What was ICICI Life’s solvency ratio in September 2026?
The insurer reported a solvency ratio of 229.9% as of September 30, 2026, above the stated regulatory requirement of 150%.
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