ICICI Prudential Life Insurance Company Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript ICICI Prudential Life Insurance Company Ltd filed with BSE on 22 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
ICICI Prudential Life Insurance reported VNB growth of 24.9% year-on-year to ₹5.71 billion in Q1-FY2027, with VNB margin at 26.7%, while PAT rose 27.8% year-on-year to ₹3.86 billion. Retail protection APE grew 60.4% year-on-year, marking the third consecutive quarter of over 40% growth following GST reforms, while the savings business mix moderated from 78.1% to 72.1% amid subdued non-participating product demand. Management also disclosed a Board-approved proposal to rename the company to 'ICICI Life Insurance Limited', pending regulatory approval, following Prudential's request to change its status from Promoter to Investor.
3 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
VNB: ₹5.71 billion (Q1-FY2027)
p. 3
“VNB growing by 24.9% year-on-year to ₹ 5.71 billion in Q1-FY2027, and VNB margins at 26.7%.”
Anup Bagchi, page 3 of the filed PDF · View the filing
PAT: ₹3.86 billion (Q1-FY2027)
p. 3
“PAT also increased by 27.8% year-on-year to ₹ 3.86 billion.”
Anup Bagchi, page 3 of the filed PDF · View the filing
Sum assured growth: 31.8% (Q1-FY2027)
p. 3
“our sum assured grew by 31.8% to ₹ 4.90 trillion, supported by a strong 45.7% year-on-year growth in protection APE”
Anup Bagchi, page 3 of the filed PDF · View the filing
Sum assured market share: 11.8% (Q1-FY2027)
p. 3
“Our sum assured market share stood at 11.8%.”
Anup Bagchi, page 3 of the filed PDF · View the filing
Retail sum assured growth: 45.9% (Q1-FY2027)
p. 3
“Retail sum assured increased by 45.9% to ₹ 1.13 trillion, driven by robust yearon-year growth of 60.4% in retail protection during the quarter.”
Anup Bagchi, page 3 of the filed PDF · View the filing
Total in-force sum assured: ₹48.06 trillion (as of June 30, 2026)
p. 3
“As of June 30, 2026, our total in-force sum assured stood at ₹ 48.06 trillion, reflecting the trust reposed in us by our customers and the scale of protection provided by the Company.”
Anup Bagchi, page 3 of the filed PDF · View the filing
New Business Premium growth: 21.3% (Q1-FY2027)
p. 3
“New Business Premium grew by 21.3% year-on-year to ₹ 48.66 billion, driven by 13.2% growth in the number of policies”
Anup Bagchi, page 3 of the filed PDF · View the filing
APE: ₹21.36 billion (Q1-FY2027)
p. 4
“APE grew by 14.6% year-on-year to ₹ 21.36 billion and RWRP grew by 13.4% year-on-year to ₹ 15.38 billion in Q1-FY2027.”
Anup Bagchi, page 4 of the filed PDF · View the filing
Savings Cost-to-Premium ratio: 13.6% (Q1-FY2027)
p. 4
“our savings Cost-to-Premium ratio reduced by 50 basis points year-on-year to 13.6% in Q1-FY2027, despite the increase in expenses resulting from the unavailability of input tax credit”
Anup Bagchi, page 4 of the filed PDF · View the filing
Claim settlement ratio: 99.3% (Q1-FY2027)
p. 4
“Our claim settlement ratio remained strong at 99.3% in Q1-FY2027, with an average turnaround time of 1 day”
Anup Bagchi, page 4 of the filed PDF · View the filing
13th month persistency: 84% (Q1-FY2027)
p. 5
“Customer retention also remained healthy, with 13th month persistency at 84%.”
Anup Bagchi, page 5 of the filed PDF · View the filing
Solvency ratio: 225.4% (as of June 30, 2026)
p. 5
“We maintained a robust solvency ratio of 225.4%, significantly above the regulatory requirement of 150%”
Anup Bagchi, page 5 of the filed PDF · View the filing
Assets Under Management: ₹3.34 trillion (as of June 30, 2026)
p. 5
“Our Assets Under Management stood at ₹ 3.34 trillion as of June 30, 2026, reflecting the scale of our franchise and the trust placed in us by our policyholders.”
Anup Bagchi, page 5 of the filed PDF · View the filing
VNB margin: 26.7% (Q1-FY2027)
p. 7
“The VNB margin stood at 26.7%, an expansion of 200 basis points from the full-year FY2026 margin of 24.7%.”
Dhiren Salian, page 7 of the filed PDF · View the filing
Total cost-to-premium ratio: 21.8% (Q1-FY2027)
p. 8
“Total cost-to-premium ratio for the quarter stood at 21.8% as compared to 21.2% last year, same quarter, primarily due to increase in protection business.”
Dhiren Salian, page 8 of the filed PDF · View the filing
Retail protection share of APE: 10.5% (Q1-FY2027)
p. 5
“the retail protection segment accounted for 10.5% of APE, compared to 7.5% in the corresponding period last year”
Amish Banker, page 5 of the filed PDF · View the filing
Group protection business growth: 37.8% (Q1-FY2027)
p. 5
“Our Group protection business, comprising credit life and group term, delivered strong growth of 37.8% year-on-year in Q1-FY2027.”
Amish Banker, page 5 of the filed PDF · View the filing
Bancassurance channel growth: 5.6% (Q1-FY2027)
p. 6
“Bancassurance channel grew by 5.6% year-on-year in Q1-FY2027 and contributed 27.4% to APE.”
Amish Banker, page 6 of the filed PDF · View the filing
Partnership distribution channel growth: 29.5% (Q1-FY2027)
p. 7
“Partnership distribution channel grew by 29.5% year-on-year in Q1-FY2027 and contributed 14.6% to APE.”
Amish Banker, page 7 of the filed PDF · View the filing
Group business growth: 38.8% (Q1-FY2027)
p. 7
“Group business grew by 38.8% year-on-year in Q1-FY2027 and contributed 22.9% to APE.”
Amish Banker, page 7 of the filed PDF · View the filing
25th month persistency: 77% (Q1-FY2027)
p. 22
“which is why you see this number that has dipped across 25th month from 81% to 77%”
Dhiren Salian, page 22 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
VNB growth
stated as an aspiration by Dhiren Salian
p. 9
“Absolute VNB is what we look at growing. And in this period, we have grown VNB by 25% on the back of the growth in protection. So absolute VNB is what we will continue to focus on.”
Dhiren Salian, page 9 of the filed PDF · View the filing
VNB margin guidance
stated firmly by Dhiren Salian
p. 10
“No, no guidance.”
Dhiren Salian, page 10 of the filed PDF · View the filing
Input tax credit drag on margin — Q3 FY2027
stated firmly by Dhiren Salian
p. 8
“It will continue for another quarter. That also will then form part of the base as we get into Q3 and Q4.”
Dhiren Salian, page 8 of the filed PDF · View the filing
Non-par savings pickup
stated conditionally by Dhiren Salian
p. 9
“As time goes by and we see some sort of tempering of those alternative investments, we should start to see some pickup on the non-par side as well.”
Dhiren Salian, page 9 of the filed PDF · View the filing
Retail protection growth
stated as an aspiration by Dhiren Salian
p. 10
“the endeavor would be to continue to hold these levels and increase going forward so that we continue to take advantage of the opportunity that exists in the protection”
Dhiren Salian, page 10 of the filed PDF · View the filing
Protection growth in H2 FY2027 — second half of FY2027
stated firmly by Dhiren Salian
p. 14
“So, if the question is will I expect to see a 60% plus growth in the second half of the year, very unlikely.”
Dhiren Salian, page 14 of the filed PDF · View the filing
MFI/non-MFI mix normalisation — coming quarters
stated as an aspiration by Dhiren Salian
p. 27
“we would expect that both MFI and non-MFI continue the growth into the coming quarters as well”
Dhiren Salian, page 27 of the filed PDF · View the filing
Pricing of protection products
stated firmly by Dhiren Salian
p. 23
“There is clearly no en-masse price change that we have done over the last 9 months nor are we expecting at this point.”
Dhiren Salian, page 23 of the filed PDF · View the filing
Agency channel growth — average company growth
stated as an aspiration by Dhiren Salian
p. 21
“We would want agency to move towards average company growth faster, sooner rather than later.”
Dhiren Salian, page 21 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the margin is largely explained by product mix and continued unavailability of input tax credit, which will persist for one more quarter.
Answered by Dhiren Salian
Asked by Shreya Shivani: Why is VNB margin not higher given the strong growth, and is there still a GST-related drag?
p. 9
“it's largely explained due to the product mix. But again, you'll have to consider that we don't have the GST availability in this quarter.”
Dhiren Salian, page 9 of the filed PDF · View the filing
Management said they are not staying away from non-par but fixed deposits are currently more attractive to customers on a sticker-price basis.
Answered by Dhiren Salian
Asked by Shreya Shivani: What is the outlook for non-par sales?
p. 9
“the environment is such that there are products on the fixed income side that at this point are little more lucrative for the customer when compared to some of our products, purely from a sticker price perspective”
Dhiren Salian, page 9 of the filed PDF · View the filing
Management reiterated there is no margin fixation and the focus is on absolute VNB growth.
Answered by Dhiren Salian
Asked by Shreya Shivani: What is the company's sustainable margin target?
p. 10
“We don't have a margin fixation. We've gone over that before as well. Absolute VNB is what we look at growing.”
Dhiren Salian, page 10 of the filed PDF · View the filing
Management described a 10-year deep partnership and said all distribution partners are important, with ICICI Bank remaining the largest single channel.
Answered by Dhiren Salian
Asked by Avinash Singh: What is the status of the Standard Chartered bancassurance partnership given Prudential's changing promoter status?
p. 13
“Standard Chartered has been a partner with us for the last 10 years, right? And in this decade, we have built a deeply integrated relationship that spans not just products, spans technology, processes and customer service.”
Dhiren Salian, page 13 of the filed PDF · View the filing
Management said protection typically features more heavily in Q1 and margins will follow whatever the product mix delivers, with MFI-driven credit life expected to help in H2.
Answered by Dhiren Salian
Asked by Avinash Singh: Will margins hold up given the seasonal protection mix skew in Q1?
p. 14
“as you look into the second half of the year, also you will see us, an uptick that will come through because of MFI business, which is part of our credit life business”
Dhiren Salian, page 14 of the filed PDF · View the filing
Management declined to provide a specific VNB growth number.
Answered by Dhiren Salian
Asked by Prayesh Jain: What VNB growth target is the company working toward for the year?
p. 16
“No guidance on that, Prayesh.”
Dhiren Salian, page 16 of the filed PDF · View the filing
Management said the GST change was viewed as a customer trust-enhancing move and repricing will be selective rather than industry-wide.
Answered by Dhiren Salian
Asked by Sanketh Godha: Is the industry moving to reprice protection products to offset the GST input tax credit drag?
p. 17
“If you were expecting en-masse price changes, that has not happened, and we don't expect that at all.”
Dhiren Salian, page 17 of the filed PDF · View the filing
Management said annuity growth this quarter was led by regular premium and the par to non-par ratio is roughly 2:1.
Answered by Dhiren Salian
Asked by Sanketh Godha: What is driving 33% annuity growth and what is the non-linked par/non-par mix?
p. 17
“annuity in this quarter is led by regular premium as compared to what you had seen in the previous quarter. In terms of par, non-par, we are about 2:1 on the par to non-par ratio at this point.”
Dhiren Salian, page 17 of the filed PDF · View the filing
Management said they remain well within the regulatory EOM cap and total cost across commission and opex stays broadly stable across channels.
Answered by Dhiren Salian
Asked by Samant Singh: How is the company managing expense of management headroom against partnership distribution growth?
p. 19
“in terms of our expense of management, we are well within the cap. We've not disclosed that number, but we are very well within the cap.”
Dhiren Salian, page 19 of the filed PDF · View the filing
Management said agency is turning positive and the VNB contribution is more accretive than the APE growth number suggests due to product mix shift.
Answered by Dhiren Salian
Asked by Nischint Chawathe: How should agency channel growth trend going forward given the improved 2% print?
p. 19
“that 2% is a much better number than we had across the previous quarters. So very clearly, you can see the trajectory is now turning positive.”
Dhiren Salian, page 19 of the filed PDF · View the filing
Management agreed the observation about LDR-driven pressure was plausible but did not commit to a specific outlook.
Answered by Dhiren Salian
Asked by Neeraj Toshniwal: Could pressure on bank loan-to-deposit ratios lead to weaker insurance sales support from banks, and could this reverse?
p. 26
“It's possible, Neeraj. Your observation is spot on, it's possible.”
Dhiren Salian, page 26 of the filed PDF · View the filing
Management confirmed that under IRDAI rules an investor below 24.99% is not required to divest, matching the analyst's understanding.
Answered by Dhiren Salian
Asked by Yash Jain: Does Prudential's reclassification from promoter to investor allow it to retain its ~22% stake without a mandatory sell-down?
p. 28
“There is no requirement for them to sell down at this stage.”
Dhiren Salian, page 28 of the filed PDF · View the filing
Risks flagged
Continued drag on margins from unavailability of input tax credit
p. 9
“this is the third quarter where we've had the impact of the input tax rate non-availability”
Dhiren Salian, page 9 of the filed PDF · View the filing
Weak non-par savings demand due to competing fixed deposit products
p. 9
“the environment is such that pickup of non-par is quite subdued relative to previous periods”
Dhiren Salian, page 9 of the filed PDF · View the filing
Slower non-participating product growth dragging on overall traditional business growth
p. 11
“non-par is really not selling at this stage. So that's creating a bit of drag in terms of where the overall traditional growth is.”
Dhiren Salian, page 11 of the filed PDF · View the filing
High base effect expected to slow retail protection growth in the second half of the year
p. 15
“protection does come across a fairly steep base as we come into the second half of the year and that base effect goes away”
Dhiren Salian, page 15 of the filed PDF · View the filing
Macro-economic and market volatility affecting customer investment preferences
p. 6
“Ongoing global geopolitical uncertainties and volatility in the equity markets influenced customer investment preferences during the quarter, leading to a shift in the overall product mix.”
Amish Banker, page 6 of the filed PDF · View the filing
Broader macro uncertainty including inflation and weather-related risks
p. 3
“Inflation remained a key area of focus, with weather-related risks, including the potential emergence of El Niño conditions, warranting close monitoring.”
Anup Bagchi, page 3 of the filed PDF · View the filing
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