ICICI Prudential Life’s Q1 profit jumps 34%, premium income up 8%
ICICI Prudential Life Insurance reported a 34% year-on-year rise in net profit to Rs. 302 crore in Q1FY26, up from Rs. 225.4 crore, driven by increased premium income and lower expenses. Net premium income rose 8% to Rs. 8,503 crore. However, the insurer’s Annualised Premium Equivalent (APE) declined by 5% to Rs. 1,864 crore, while the Value of New Business (VNB) dipped 3.18% to Rs. 457 crore. The VNB margin contracted slightly to 24.5% from 25%. Expenses dropped by 4.72% to Rs. 1,891.5 crore. CEO Anup Bagchi highlighted the 24.1% Y-o-Y growth in retail protection and a 36.3% rise in the total new business sum assured. He attributed this to the company’s strong distribution and diverse product suite. Despite the fall in APE and VNB, the company continued to prioritise protection-led strategies to sustain long-term profitability and market share.
LIC invests Rs. 5,000 crore in SBI’s Rs. 25,000 crore QIP, stake rises
Life Insurance Corporation of India (LIC) has invested Rs. 5,000 crore in State Bank of India’s Rs. 25,000 crore Qualified Institutional Placement (QIP), raising its stake in the bank to 9.21%. SBI announced that the QIP received strong interest, being subscribed 4.5 times, with global investors accounting for 64.3% of the bids and receiving one-third of the allocation. The remaining two-thirds were allotted to domestic investors, led by LIC. This strategic investment enhances LIC’s influence in India’s largest public sector bank and reflects growing confidence among institutional investors in the banking sector’s long-term growth trajectory. The QIP proceeds will support SBI’s growth plans, strengthen its capital adequacy, and expand its lending capacity across retail, MSME, and infrastructure sectors.
HDFC Life posts 14% profit rise, market share hits record 12.1%
HDFC Life Insurance reported a 14.23% year-on-year rise in Q1FY26 net profit to Rs. 546 crore, backed by a 19% growth in renewal premiums and steady margins. Total net premium income rose 15.6% Y-o-Y to Rs. 14,446 crore, while APE increased 12.5% to Rs. 3,225 crore. Value of New Business (VNB) climbed 12.7% to Rs. 809 crore, with the VNB margin holding steady at 25.1%. However, expenses surged 19% to Rs. 3,259 crore. CEO Vibha Padalkar highlighted that over 70% of new customers in Q1 were first-time buyers. The company gained 70 basis points in overall market share to reach 12.1% and 40 bps in private sector share to 17.5%. Persistency ratios saw some moderation, with the 13th month at 82.7% and the 61st month at 61%. The solvency ratio improved to 192% from 186% last year. The insurer’s reach across Tier-I to Tier-III markets was also significantly enhanced.
HDFC Life to scale up with tech-led strategy, eyes Tier-III markets
HDFC Life Insurance plans to expand its operations with a focus on macroeconomic opportunity, technological transformation, and deeper rural outreach, Chairman Keki Mistry said at the company’s 25th AGM. He emphasised that despite global headwinds—geopolitical risks, trade uncertainties, and climate challenges—the Indian economy is poised for growth in FY26. Insurers like HDFC Life are tapping into this by leveraging partnerships with banks and microfinance institutions to offer coverage in Tier-II and Tier-III cities. Mistry outlined a clear strategy of “thoughtful and purposeful expansion,” underpinned by cutting-edge technology to deliver a best-in-class customer experience. He acknowledged challenges such as rising surrenders and adverse product mix but noted that new business margins remained resilient, falling only 70 basis points. This signals robust fundamentals and operational agility as HDFC Life adapts to evolving market demands.
R Doraiswamy takes over as LIC MD & CEO for a three-year term
R Doraiswamy has been appointed as the Managing Director and Chief Executive Officer of Life Insurance Corporation of India (LIC) for a period of three years, or until he turns 62, whichever is earlier. The Ministry of Finance formalised the appointment via a notification that also mentioned the tenure would be subject to further orders. Prior to this role, Doraiswamy served as one of LIC’s Managing Directors. His predecessor, Siddhartha Mohanty, completed his tenure on June 7, 2025, after which Sat Pal Bhanoo was given interim charge for three months. LIC’s leadership structure comprises four Managing Directors in addition to the MD & CEO. Doraiswamy’s elevation comes at a time when the insurer is executing a multi-pronged strategy focused on product innovation, margin improvement, and digital transformation amid rising competition in the insurance sector.
ULIP share moderates as private life insurers shift to non-par products
Listed private life insurers in India saw a decline in the share of Unit-Linked Insurance Plans (ULIPs) in Q1FY26, with companies shifting focus to non-participating products amid regulatory changes and volatile equity markets. SBI Life, the country’s largest private life insurer, reported a drop in ULIPs to 57% of total Annualised Premium Equivalent (APE). Analysts attribute the trend to revised surrender value rules and a strategic focus on high-margin, non-par offerings. The protection segment remained flat at 6%. While ULIP volumes dipped, SBI Life is projected to show modest APE growth of 8% and VNB growth of up to 17% in the quarter. However, margin compression is expected. Brokerages have advised tracking VNB margins, product mix changes, and strategic commentary closely. The shift toward non-par products is expected to benefit long-term profitability and risk-adjusted returns, especially in light of changing market dynamics and customer preferences.
LIC Q1 net profit up 5%, VNB margin improves to 15.4%
Life Insurance Corporation of India (LIC) posted a 5% year-on-year rise in net profit to Rs. 10,987 crore in Q1FY26, driven by strong investment income and reduced operating expenses. Net premium income rose 5% to Rs. 1.19 lakh crore, while investment income climbed 7% to Rs. 1.03 lakh crore. Operating expenses for insurance fell 10% to Rs. 7,549 crore. LIC saw a 34% increase in Annualised Premium Equivalent (APE) in non-participatory products, while Value of New Business (VNB) margin improved to 15.4% from 13.9%. CEO & MD R Doraiswamy attributed lower 13th-month persistency (64.35%) to earlier low-ticket policies but said revival efforts are underway. The company has undertaken several product interventions in the past year in response to evolving regulatory frameworks. LIC continues to focus on improving policyholder retention and product profitability, aligning with its broader transformation initiatives in a competitive insurance landscape.
LIC awaits regulatory nod to foray into health insurance space
LIC is exploring entry into the standalone health insurance segment and is awaiting regulatory changes that would allow it to become a composite insurer. Speaking on the matter, LIC MD & CEO R Doraiswamy stated that the insurer is evaluating multiple strategic options, including acquiring a significant stake in an existing health insurer, rather than launching its own health insurance products. The Corporation had earlier held advanced talks with ManipalCigna, although no binding agreement has been finalised. Doraiswamy noted that any investment exceeding the regulatory cap would require IRDAI’s special approval. If composite insurance reforms are implemented, LIC would be able to directly underwrite health products. Until then, it remains open to investing in a health insurer while aligning with its long-term strategy to expand across insurance verticals. The move supports LIC’s vision to increase insurance penetration and diversify its portfolio amid growing healthcare demand.
Private insurers request IRDAI to defer listing roadmap till 2027
Several leading private life and general insurance companies have approached the Insurance Regulatory and Development Authority of India (IRDAI) seeking an extension until 2027 for submitting their plans to go public. According to sources, insurers cited the upcoming implementation of IFRS 17 (Ind AS 117 in India) as a key reason for the delay. The new accounting standard, effective from April 1, 2026, will significantly overhaul financial reporting for insurance contracts by redefining profit recognition, liability valuation, and disclosure practices. These changes could materially impact valuations and financial metrics, prompting insurers to wait until the transition is complete before initiating public listings. IRDAI had earlier mandated at least ten insurers to submit their listing strategies by February-end. Industry stakeholders believe that aligning listings with post-IFRS 17 financials would ensure better transparency and investor confidence. IRDAI did not respond to media queries regarding the extension request.
SBI Life Q1 profit up 14.4% on robust renewal premiums
SBI Life Insurance posted a 14.41% year-on-year increase in net profit to Rs. 594.37 crore for Q1FY26, driven by a 23.5% surge in renewal premium collections. Total net premium income rose 13.7% to Rs. 17,178.5 crore, with first-year premiums up 12.5% and renewal premiums at Rs. 10,546.3 crore. While single premium declined 4.1%, the insurer maintained strong persistency, with its 13th-month ratio at 87.12% and 61st-month ratio improving to 62.8%. The annualised premium equivalent (APE) grew 9% to Rs. 3,970 crore, and value of new business (VNB) rose 12% to Rs. 1,090 crore. VNB margins expanded 60 bps to 27.4%. MD & CEO Amit Jhingran noted a strategic shift in product mix towards protection and non-par guaranteed products. SBI Life retained its leadership with a 22.3% private market share in individual rated premiums. Management expenses rose to Rs. 1,915.2 crore. Distribution strength was supported by both agency and bancassurance channels, along with brokers and other banking partners.
ICICI Prudential Life Spends Rs. 2.51 Cr Voluntarily on CSR in FY25
ICICI Prudential Life Insurance has reported a voluntary Corporate Social Responsibility (CSR) expenditure of Rs. 2.51 crore in FY 2025, surpassing its statutory obligation. The company allocated these funds towards sustainable initiatives in healthcare, financial literacy, education, and environment-focused programs. According to its CSR report, key projects included free medical camps in underserved regions, life skills education for underprivileged youth, and awareness campaigns promoting insurance penetration in rural areas. ICICI Prudential’s CSR strategy aims to build long-term community resilience and aligns with its commitment to inclusive growth. The company also emphasized stakeholder engagement and monitoring frameworks to ensure impact and accountability. This voluntary CSR allocation highlights the insurer’s proactive approach to social development beyond regulatory compliance. As insurers increasingly integrate ESG metrics, ICICI Prudential’s initiative sets a strong precedent for responsible corporate behavior in the financial services sector.
Canara HSBC Life Insurance Launches New Pension Product for Retirement Planning
Canara HSBC Life Insurance has introduced a new pension product aimed at bolstering retirement planning among Indian consumers. The new plan offers guaranteed lifelong income post-retirement, with flexible annuity options tailored to customer needs. Designed to address the growing demand for stable post-retirement income amid rising life expectancy, the product allows policyholders to start annuity payouts immediately or defer them based on retirement goals. The launch aligns with the insurer’s strategy to expand its annuity portfolio and cater to India’s underserved pension market. Key features include joint-life options, return of purchase price, and tax benefits under applicable sections. Company officials stated that the product is structured to meet both conservative and moderate risk appetites, providing security and predictability. As retirement planning becomes a priority in financial portfolios, insurers are developing solutions to ensure long-term income streams, and this move strengthens Canara HSBC’s position in the growing retirement segment.
IndiaFirst Life Eyes IPO, Leverages Bancassurance for Growth Surge
IndiaFirst Life Insurance is ramping up its growth strategy by doubling down on its bancassurance channel and preparing for a potential initial public offering (IPO). The insurer, which saw strong premium growth in recent quarters, is focusing on deepening partnerships with its promoters—Bank of Baroda and Union Bank of India—to expand product reach across tier-2 and tier-3 cities. According to MD & CEO Rushabh Gandhi, bancassurance now accounts for nearly 89% of the company’s business, highlighting its critical role in driving customer acquisition. With profitability improving and assets under management crossing Rs. 21,000 crore, the insurer is positioning itself for a market listing, subject to regulatory approvals and market conditions. The company is also diversifying its product portfolio by adding annuities and guaranteed return plans to attract both mass and affluent segments. The upcoming IPO is expected to further fuel growth and brand visibility.
Life Insurers Enhance Policy Value to Offer Long-Term Financial Assurance
Life insurance companies are increasing policy values and guarantees to maintain consumer trust and ensure continued relevance in long-term financial planning. Amid economic volatility and rising consumer expectations, insurers are enhancing the value proposition of traditional savings-cum-protection policies and unit-linked insurance plans (ULIPs). Companies like HDFC Life, SBI Life, and ICICI Prudential are introducing features like loyalty additions, guaranteed annual payouts, and flexible premium payment terms. This shift aims to counter challenges from mutual funds and other investment tools offering higher short-term returns. Analysts note that post-COVID consumer behavior has shifted toward long-term security and health-linked protection, which is driving demand for robust insurance products. Additionally, digital onboarding and simplified claim processes are improving accessibility and customer satisfaction. With IRDAI pushing for innovation and deeper market penetration, life insurers are reimagining products that deliver both protection and wealth creation over time.
LIC Pays Rs. 7,324 Crore Dividend to Government for FY25
The Life Insurance Corporation of India (LIC) has declared a dividend of Rs. 7,324 crore to the Government of India for the financial year 2024–25. This dividend represents the government’s shareholding of over 96% in LIC, the country’s largest life insurer. LIC’s board approved the payout after reviewing the insurer’s financial performance for the year, which showed strong premium inflows, improved asset quality, and stable solvency margins. The dividend amount is expected to support the Centre’s non-tax revenue targets and fiscal consolidation efforts for the current financial year. LIC, which was listed on the stock exchanges in May 2022, continues to play a critical role in India’s insurance and investment ecosystem, with a vast policyholder base and significant investments in equity and government securities. The dividend payment reaffirms LIC’s commitment to delivering shareholder value while fulfilling its policyholder and national economic responsibilities.
GST Reduction Likely to Boost Life and Health Insurance Penetration
A potential cut in Goods and Services Tax (GST) on life and health insurance premiums could significantly increase insurance adoption among India’s price-sensitive consumers, industry experts say. Currently, health insurance policies attract 18% GST, while term and savings-linked life insurance products are taxed at 18% and 4.5% respectively. A reduction in tax rates would not only lower the overall cost of policies but also align with the government’s larger goal of expanding insurance penetration. According to sector leaders, a GST cut could catalyse growth, especially in underserved rural and lower-income segments where affordability remains a barrier. Insurance companies have long advocated for lower GST, arguing that life and health cover should be treated as essential services, akin to education or healthcare. Any positive decision in the upcoming GST Council meetings could provide a strong push to retail insurance sales and further financial inclusion.
HDFC Life and Avanse Financial Services Join Hands to Offer Financial Security
HDFC Life Insurance has partnered with Avanse Financial Services to provide tailored insurance solutions to education loan customers, aiming to offer financial protection to students and their families. Under this collaboration, HDFC Life will offer customised credit protect policies to cover outstanding education loans in case of unforeseen circumstances. The initiative is designed to ensure that financial obligations do not become a burden on family members in the borrower’s absence. According to both companies, the partnership reflects a shared commitment to holistic financial planning, especially for aspiring students pursuing higher education in India and abroad. The credit-linked insurance will be seamlessly integrated with loan products offered by Avanse, providing both peace of mind and added value to customers. This collaboration is expected to enhance the safety net around educational borrowing, addressing an essential gap in the market.
