ICICI Pru Life Q2 FY27 Results (NSE: ICICIPRULI)
Signal: Earnings grew
The read
The core trajectory is mixed: net premium income rose 16.5% YoY to ₹1,380,390 lakh and 13th-month persistency improved to 83.9%, but total policyholders’ income fell 2.3% to ₹1,174,265 lakh because linked-fund investment income swung to a ₹121,232 lakh loss; PAT still rose 25.0% to ₹37,422 lakh, making earnings quality dependent on investment-market normalization rather than purely operating surplus.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,742.65 Cr | -2.3% | -58.6% |
| Net profit | ₹374.22 Cr | +25.0% | |
| EPS | ₹2.58 | +24.6% | |
| EBIT margin | 0% |
P&L walk
Total policyholders’ income was ₹1,174,265 lakh, down 2.3% YoY and 58.6% QoQ as investment income swung to a ₹121,232 lakh loss; PAT nevertheless rose 25.0% YoY to ₹37,422 lakh, supported by shareholder investment income and lower policyholder-account volatility.
Segments
Linked Life was the largest positive contributor with segment surplus of ₹13,400 lakh, while Annuity Non Par dragged results with a ₹5,685 lakh deficit; the sharpest investment shock was in Linked Life, where investment income was a ₹434,339 lakh loss and assets were ₹1,376,105 lakh.
Key positives
- Net premium income was ₹1,380,390 lakh, up 16.5% YoY and 41.6% QoQ, showing underlying premium momentum despite volatile investment income.
- Basic EPS rose 24.6% YoY to ₹2.58, broadly tracking PAT growth of 25.0%, with no material dilution signal.
- Solvency ratio improved to 229.9% from 213.2% YoY and 225.4% QoQ.
- 13th-month persistency improved to 83.9% from 81.4% YoY and 83.4% QoQ.
Key concerns
- Total policyholders’ income declined 2.3% YoY and 58.6% QoQ to ₹1,174,265 lakh as net investment income fell to a ₹121,232 lakh loss.
- Expenses of management rose 23.3% YoY to ₹265,417 lakh, faster than total policyholders’ income, and the ratio increased to 18.6% from 17.5% YoY.
- 25th-month persistency fell to 74.5% from 78.5% YoY, indicating pressure in the medium-term retention cohort.
- Policyholders’ surplus fell 60.9% YoY to ₹18,971 lakh, while Annuity Non Par reported a ₹5,685 lakh segment deficit.
Research and educational content only. Not investment advice.