Acko turns profitable with Rs 44 crore net profit in FY26 ahead of IPO

The insurtech startup reversed a Rs 193.4 crore loss from the previous year as growth in core insurance operations and investment income lifted its overall financial performance

by e4m Staff
Published: May 14, 2026 11:58 AM | 2 min read

Acko has achieved profitability in FY26, reporting a net profit of Rs 43.6 crore, a significant turnaround from a loss of Rs 193.4 crore in the previous fiscal year.
The company's net earned premium (NEP) grew by 26% year-on-year to Rs 1,917.9 crore, supported by increased investment earnings, which rose to Rs 265.1 crore, a 23.2% increase from FY25.
Total income for Acko General Insurance reached Rs 2,183 crore, reflecting a 25.6% rise compared to the previous year, despite a 19.2% increase in net claims incurred to Rs 1,270.7 crore.
Acko is preparing for an IPO and has shifted focus towards pure protection insurance products, while also reducing its workforce by nearly 5% to enhance operational efficiency through AI-led automation.

Acko, while preparing for its IPO, has swung to profitability in FY26, posting a net profit of Rs 43.6 crore against a loss of Rs 193.4 crore in the previous fiscal, according to media reports.

The turnaround was backed by steady growth in the company’s core insurance operations. Reports suggest net earned premium (NEP) expanded 26% year-on-year to Rs 1,917.9 crore in FY26, up from Rs 1,522.3 crore a year earlier.

Investment earnings also contributed to the improved performance. Income generated from investments reportedly rose to Rs 265.1 crore during the fiscal, marking a 23.2% increase over FY25. Gains from sale and redemption of investments climbed sharply by 64.2% YoY to Rs 37.6 crore, while income earned through interest, dividends and rent touched Rs 227.5 crore.

Backed by these gains, total income for ACKO General Insurance stood at Rs 2,183 crore in FY26, reflecting a 25.6% rise compared to the previous financial year, as per reports.

At the same time, claims expenses continued to rise alongside business growth. Net claims incurred increased 19.2% YoY to Rs 1,270.7 crore, while operating expenses linked to the insurance business were reported at Rs 623.1 crore.

Despite the higher claims outgo, the company improved its underwriting metrics during the year. Media reports indicated that the net incurred claims-to-net earned premium ratio improved to 66.3% in FY26 from 69.95% in FY25.

The reported financial performance comes amid preparations for Acko’s proposed public listing. Earlier this year, the startup was reported to have reduced nearly 5% of its workforce — around 60 employees — as it increased the use of AI-led automation across operations.

Separately, reports also suggest the company’s strategic pivot away from investment-linked insurance offerings such as ULIPs and endowment plans, with greater focus being placed on pure protection products.

Founded in 2016 by Varun Dua and Ruchi Deepak, Acko became a unicorn in 2021 after securing $255 million in a Series D funding round led by General Atlantic and Multiples Private Equity. To date, the startup has reportedly raised around $458 million from investors including Lightspeed, Elevation Capital and Accel.