Page 15 - The Insurance Times November 2025

Ò»©­

ICICI Prudential Life posts
Life insurers cut distributor commissions to pass on
19% rise in Q2 profit to
GST relief to customers
Rs.299 crore
Life insurers have decided to lower distributor commissions to ensure that
the entire benefit of the Goods and Services Tax (GST) exemption on ICICI Prudential Life Insurance
insurance premiums is passed on to customers, without revising product reported an 18.9 per cent year-on-
prices. The move, conveyed to the Insurance Regulatory and Development year rise in standalone net profit to
Rs.299.26 crore for the second quarter
Authority of India (IRDAI) through the Life Insurance Council, will take effect
of FY26, supported by higher renewal
from October 1.
and single premiums. The company's
Sources said insurers will offset the loss of input tax credit (ITC) due to zero stock gained 1.03 per cent to
GST by reducing distributor payouts by around 18 per cent. Letters have
Rs.599.65 after the results.
been sent to agents, and talks with banks are underway. The overall ITC
impact for the industry is estimated at Rs.15,000 crore. Total income fell 51.9 per cent to
Rs.12,015.64 crore, while profit before
While insurers will not reprice products, they may adjust their product mix tax rose 21.2 per cent to Rs.347.01
to protect margins. The revised commission structure will apply to both new crore. Net premium income grew 10.1
and renewal policies, ensuring that policyholders receive the full benefit of
per cent to Rs.11,843.10 crore, driven
the GST exemption. by a 9.7 per cent rise in renewal
premiums and a 25 per cent increase
in single premiums.
Life insurers' new business year-on-year, while individual non-
single premiums rose to Rs.10,837 For H1 FY26, profit rose 26 per cent to
premium rises 14.8% in
crore, marking a YTD increase of 2.16 Rs.601 crore. The Value of New
September per cent. The group segment saw the Business (VNB) stood at Rs.1,049 crore
The life insurance industry recorded a strongest performance, with single with a 24.5 per cent margin. Total
14.81 per cent growth in new business premiums up 32.39 per cent to premium grew 9.2 per cent to
premiums (NBPs) in September 2025, Rs.22,574 crore and total group Rs.21,251 crore, and retail new
rising to Rs.40,206 crore from premiums up 35.23 per cent. business sum assured increased 17.2
Rs.35,020 crore in the same month last The industry also added 5,39,804 new per cent year-on-year.
year, according to data from the Life individual agents during the period,
Insurance Council. Year-to-date (YTD) registering a 3.71 per cent rise in total Ageas Federal Life, CSB
collections grew from Rs.1,89,214 crore agent count. Insurers said the Bank partner to expand
to Rs.2,03,668 crore. expansion reflects efforts to deepen
Individual single premiums stood at coverage across underserved markets SME insurance reach
Rs.4,515.78 crore, up 4.99 per cent and increase financial inclusion. Ageas Federal Life Insurance has

14 November 2025 The Insurance Times