ICICI Life Insurance - September retail sales slipped while headline new business still grew
ICICI Life Insurance sells term cover, annuities and market-linked and guaranteed savings plans to individuals and groups. On October 8, 2026, it said September retail yearly sales fell 1.8% to Rs 726 crore while headline yearly sales rose 10.1% to Rs 959 crore .
Retail sales broke from headline trend in September
Individual sales slipped while overall sales kept rising
Annualised premium equivalent, or APE, is the yearly value of new policies. Retail APE is that value from individual customers. The September update gives the run from the soft FY2026 base through Q1-FY2027 and July-September to the half year .
| Period | APE growth (YoY) | Retail APE growth (YoY) |
|---|---|---|
| FY2026 | 2.2% | -0.1% |
| Q1-FY2027 | 14.6% | 8.9% |
| July 2026 | 14.5% | 12.0% |
| August 2026 | 23.4% | 24.5% |
| September 2026 | 10.1% | -1.8% |
| H1-FY2027 | 15.1% | 9.9% |
The pattern shows headline and retail moving together in July and August, then diverging in September. The half year still holds above last year because the early months offset the September pause.
Cash from new policies surged on non-retail mix
New business premium is total cash from newly sold retail plus group policies. New business sum assured is the total cover promised on those policies. The update gives both on the same monthly path .
| Period | New business premium growth (YoY) | New business sum assured growth (YoY) |
|---|---|---|
| FY2026 | 9.9% | 21.4% |
| Q1-FY2027 | 21.3% | 31.8% |
| July 2026 | 20.7% | 20.5% |
| August 2026 | 10.0% | 57.9% |
| September 2026 | 53.4% | 12.0% |
| H1-FY2027 | 25.0% | 30.1% |
The September jump in cash was far stronger than the rise in yearly sales value. That points to more single-premium or group business in the month, which brings in more cash upfront without adding as much yearly sales value or cover.
Protection and group business carried the half
Fast protection growth offset slow savings
In the June quarter, management said geopolitical uncertainty and equity volatility shifted customer choice away from savings toward protection . The June-quarter split on APE basis shows where growth came from .
| Q1-FY2027 segment on APE basis | APE (Rs crore) | YoY |
|---|---|---|
| Linked savings | 928 | 6.4% |
| Non-linked savings | 362 | -9.5% |
| Protection | 596 | 45.7% |
| Annuity | 133 | 33.0% |
| Group funds | 118 | 42.2% |
Savings as a whole grew slowly, with linked plans steady and non-linked savings down. Management said fixed deposits with very high sticker prices competed with guaranteed savings, and the non-linked book tilted about 2 to 1 toward participating products . Annuity growth was led by regular-premium deferred annuity . Retail protection, up 60.4% to Rs 223 crore in the quarter, was the third straight quarter above 40% after GST reforms .
Partners and group channels filled the retail gap
The same tilt shows up by channel. The June-quarter channel split on APE basis frames why headline can hold when retail slows .
| Q1-FY2027 channel on APE basis | APE (Rs crore) | YoY |
|---|---|---|
| Agency | 463 | 2.0% |
| Direct | 286 | 8.3% |
| Bancassurance | 584 | 5.6% |
| Partnership distribution | 312 | 29.5% |
| Group | 490 | 38.8% |
Group grew far faster than retail and raised its share of sales. Partnership distribution also grew strongly, while agency turned just positive after prior declines. Management said protection growth was broad across channels, with ICICI Bank at roughly 15% as the largest single distributor and no other distributor above 5% . The base spans over 2.44 lakh advisors, 52 banks and over 1,500 non-bank partnerships .
Profit depended on mix, not just sales
Value grew faster than volume in June quarter
Value of new business, or VNB, is the present value of future profits expected from new policies sold. VNB margin is VNB divided by APE. The June-quarter outcome versus last year and the full-year base shows value running ahead of volume .
| Period | Value of new business (Rs crore) | VNB margin | Profit after tax (Rs crore) |
|---|---|---|---|
| Q1-FY2026 | 457 | 24.5% | 302 |
| FY2026 | 2629 | 24.7% | 1600 |
| Q1-FY2027 | 571 | 26.7% | 386 |
The gain came from richer mix and efficiency even after higher costs from unavailability of input tax credit . Management stresses absolute VNB over any fixed margin target, with no guidance for the year . Levers named are longer tenors, higher cover multiples and more rider attachment .
Protection pace is expected to cool on a high base
Management wants to hold protection levels and build on them, but says 60% plus retail protection growth is very unlikely to sustain into the second half given the steep base built in Q3 and Q4 of FY2026 . Support could come from credit life as microfinance recovers on base effect . It cautions that month-to-month growth is volatile in a long-term business .
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