ICICI Pru Life reported a 26.5% year-on-year increase in profit after tax (PAT) to Rs 3.74 billion in the second quarter of fiscal 2027, according to thehindubusinessline.com. The company’s value of new business (VNB) grew 20.3% year-on-year to Rs 7.1 billion, with a VNB margin of 25.4%, slightly below some estimates but showing improvement from the previous fiscal year.
The company’s VNB margin expanded by 100 basis points year-on-year but declined 129 basis points quarter-on-quarter to 25.4%, driven by a lower share of protection products in the mix, which fell 6.2% quarter-on-quarter to 20%. On a year-on-year basis, protection’s share increased by 270 basis points. Management attributed margin improvement to a better product mix, with retail annual premium equivalent (APE) growth at 10.5% year-on-year. The appointment of Sidharatha Mishra as managing director and CEO from October 14 is subject to regulatory approvals.
ICICI Pru Life’s steady improvement in fundamentals comes amid regulatory clarity and ongoing stake sales by Prudential, which are key catalysts for the company. The stock trades at a price-to-embedded value (PEV) of 1.0 times for fiscal 2028 estimates, indicating limited downside potential. HSBC and Nomura have maintained buy ratings with target prices of Rs 5822 and Rs 7102, respectively, citing positive margin surprises and growth momentum in non-protection segments.
The company’s performance in Q2 FY27 reflects resilience in a competitive insurance market, with VNB growth expected to moderate in the second half of the fiscal year due to a high base effect from protection products. The next quarterly results will provide further clarity on the sustainability of growth and margin trends, as well as the impact of leadership changes.