CRISIL Ratings has reaffirmed its ‘Crisil AAA/Stable’ rating on ICICI Prudential Life Insurance Company Limited’s subordinated debt instruments. The rating reflects ICICI Bank’s strategic support, ICICI Pru Life’s established market position, diversified distribution channels, adequate capitalization, and healthy profitability. These strengths are offset by the challenge of sustaining growth and profitability amid rising competition. The rating applies to ₹1200 Crore and ₹1400 Crore subordinated debt.
Rating Reaffirmation Details
CRISIL Ratings has reaffirmed its ‘Crisil AAA/Stable’ rating on the subordinated debt instruments of ICICI Prudential Life Insurance Company Limited (ICICI Pru Life). This decision, announced on October 28, 2025, underscores the company’s financial stability and strong market position.
Key Rating Strengths
The rating incorporates the strategic importance and support from its parent, ICICI Bank Ltd, as well as ICICI Pru Life’s established market position, well-diversified distribution channels, adequate capital, and healthy persistency metrics and profitability.
Strategic Importance and Support from ICICI Bank
ICICI Pru Life benefits from a strong linkage with ICICI Bank, reflected in the shared brand and majority ownership. ICICI Bank’s presence in the life insurance sector is primarily channeled through ICICI Pru Life, which is a critical entity for the bank. This linkage implies consistent support, both financial and in terms of board oversight, from ICICI Bank.
Market Position and Distribution
ICICI Pru Life is expected to maintain its position as a leading player in the life insurance industry. As of September 30, 2025, its market share of new business premiums stood at 11.4%. The company has successfully diversified its sourcing channels, leading to robust business growth. A strong brand image and direct access to a large clientele through its multi-tiered distribution channel also support growth.
Financial Performance and Capitalization
The company maintains a well-diversified product mix and is focused on a customer-centric approach. For the first half of fiscal 2026, Unit-Linked Insurance Plans (ULIPs) accounted for 48.0%, non-linked products 21.8%, protection 19.3%, annuity 5.0% and group funds 5.8% of the annual premium equivalent (APE). Solvency margin remained healthy at 2.13 times as of September 30, 2025, and absolute net worth was ₹12,535 crore.
Rating Sensitivity
Factors that could lead to a downgrade include a downgrade in the rating of ICICI Bank, a change in ICICI Bank’s strategic support, or a decline in the solvency ratio below 170%.
Source: BSE
