ICICI Prudential Life Insurance Company Limited’s ratings have been reaffirmed, and withdrawn for matured instruments. The [ICRA]AAA (Stable) rating has been reaffirmed for ₹1,400.00 crore subordinated debt and assigned to a new ₹1,200.00 crore subordinated debt. The ratings reflect ICICI Pru’s established market position and healthy capitalization, with a solvency of 2.13 times as of September 30, 2025.
Rating Reaffirmation and Withdrawal
ICRA has reaffirmed the [ICRA]AAA (Stable) rating for ICICI Prudential Life Insurance Company Limited’s subordinated debt programs. Simultaneously, the rating for a ₹1,200.00 crore subordinated debt program has been withdrawn, following the instrument’s maturity. The total rated amount stands at ₹2,600.00 crore.
Key Rating Drivers
The ratings are underpinned by ICICI Prudential’s strong market presence as one of the leading private life insurers. A diversified product range and extensive distribution network contribute to the company’s solid market position. Capitalization is supported by robust internal accruals, reflected in the solvency ratio of 2.13 times as of September 30, 2025, significantly above the regulatory minimum of 1.50 times. The company’s profitability remains strong, demonstrated by an average RoE of 9.6% and RoEV of 14.2% over the past five years.
Promoter Support
The ratings also factor in the strength of ICICI Bank Limited, holding 51.0%, and Prudential Corporation Holdings Limited, holding 22.0%, in ICICI Pru as of September 30, 2025. The strategic importance to ICICI Bank and the shared brand name reinforce expectations of timely and adequate support from ICICI Bank if needed.
Value of New Business and Outlook
ICICI Pru’s value of new business (VNB) increased to ₹2,370 crore in FY2025 from ₹2,227 crore in FY2024. The Stable outlook reflects expectations of continued support from ICICI Bank and maintaining a solvency level above the negative rating trigger.
Withdrawal Rationale
The rating assigned to the ₹1200.00 crore subordinated debt program has been withdrawn, as the instrument has been fully repaid via exercise of call option on the due date.
Rating Sensitivities
Negative factors include a decline in the credit profile of ICICI Bank, a decrease in ICICI Pru’s strategic importance to ICICI Bank, or a sustained decline in the solvency ratio below 1.70 times.
Source: BSE
