Mumbai, Oct 14 (IANS) ICICI Prudential Life Insurance on Tuesday reported a 1.72 per cent decline in its net profit for the July–September quarter (Q2) of FY26, coming in at Rs 295.8 crore compared to Rs 300.99 crore in the same period previous financial year (Q2 FY25).

However, on year-on-year (YoY), the insurer reported an 18 per cent rise in net profit, compared with Rs 251 crore in the same period last financial year (Q2 FY25), according to its stock exchange filing.

The fall in profit was accompanied by a slight dip in the company’s new business performance, with the annualised premium equivalent (APE) slipping 2 per cent YoY to Rs 2,450 crore from Rs 2,500 crore.

Despite the modest decline in profit and APE, the company’s gross premium income grew 19 per cent to Rs 13,320 crore, up from Rs 11,175.2 crore in the year-ago quarter, supported by steady growth in the retail segment.

The total premium income rose 10 per cent to Rs 12,297 crore during the quarter, as per the filing.

Value of New Business (VNB) improved marginally by 1 per cent to Rs 592 crore, compared to Rs 586 crore in Q2 FY25, while the VNB margin expanded to 24.4 per cent from 23.4 per cent, indicating better profitability in new business.

In terms of product mix, linked savings products contributed 48 per cent of APE, non-linked savings 22 per cent, and protection products 19 per cent.

Retail protection APE rose 2.4 per cent to Rs 309 crore, and annuity APE grew 11.8 per cent to Rs 935 crore.

By distribution channel, the agency business posted strong growth with APE rising 23 per cent to Rs 305 crore, while the direct channel also saw a 23 per cent increase to Rs 546 crore.

However, bancassurance APE dropped 21 per cent to Rs 1,067 crore, even as partnership distribution rose 15 per cent to Rs 767 crore.

Operational efficiency improved during the quarter, with the cost-to-total premium ratio for the savings line of business declining to 17.7 per cent from 20.5 per cent.

As of September, the company’s solvency ratio stood at 213.2 per cent, slightly higher than 212.2 per cent a year ago.

Assets under management (AUM) increased to Rs 3.21 lakh crore from Rs 3.09 lakh crore in September 2024, while embedded value (EV) rose to Rs 50,501 crore from Rs 47,951 crore.

Following the announcement, ICICI Prudential Life Insurance shares gained 3 per cent to Rs 610.65 on the BSE.

–IANS

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