ICICI Prudential reports strong profit growth, adapts to GST reforms

ICICI Prudential Life Insurance Company Limited reported a 26% year-on-year growth in profit after tax (PAT) to INR 6.01 bn for H1-FY2026, primarily driven by higher investment income from shareholder funds. Total premium increased by 9.2% year-on-year to INR 212.51 bn, with retail protection APE growing by 10.8%. The value of new business (VNB) for the period stood at INR 10.49 bn, with a VNB margin of 24.5%. Embedded value grew 9.7% year-on-year to INR 505.01 bn, while assets under management (AUM) reached INR 3.21 trillion as of September 30, 2025.

The company is strategically addressing recent GST reforms, which have made life insurance more affordable and accessible. While acknowledging a short-term impact on profitability due to the disallowance of input tax credit, ICICI Prudential aims to mitigate this through renegotiating commissions with distributors and optimizing operating expenses. The company expects the reforms to spur growth and increase demand, particularly for protection products, which are now 18% cheaper.

Despite some slowdown in linked and annuity businesses on a high base from the previous year, non-linked savings grew by 15.6% in H1-FY2026. The company remains focused on customer-centricity, product innovation, and diversified distribution to achieve sustainable business growth and increase absolute VNB, leveraging favorable market conditions and regulatory support.