ICICI Prudential Reports Profit Growth; HDFC Life Faces Margin Pressure Amid GST Changes

ICICI Prudential Life Insurance reported a 20% year-on-year rise in Q3 net profit to ₹390 crore, driven by strong investment income and improved margins following GST reforms that reduced taxes on life insurance products. Its value of new business margin increased to 24.4%, supported by higher protection business premiums. Meanwhile, HDFC Life is expected to report double-digit growth in annualised premium equivalent (APE) but a decline in profitability due to GST input tax credit losses, with analysts forecasting a 200 basis points contraction in VNB margins to 24%. Both insurers are navigating the impact of GST changes on product mix and margins.