CRISIL has assigned its ‘CRISIL AAA/Stable’ rating to ICICI Prudential Life Insurance Company’s ₹1200 crore subordinated debt. The rating on existing subordinated debt has been reaffirmed at ‘CRISIL AAA/Stable’. The rating factors in strategic support from ICICI Bank, ICICI Pru Life’s established market position, diversified distribution channels, adequate capital, and healthy persistency. CRISIL has also withdrawn its rating on ₹1200 crore of subordinated debt due to early redemption.
Rating Upgrade and Rationale
CRISIL Ratings has assigned a ‘CRISIL AAA/Stable’ rating to the ₹1200 crore subordinated debt of ICICI Prudential Life Insurance Company Limited (ICICI Pru). The rating agency also reaffirmed the rating on the existing subordinated debt, maintaining it at ‘CRISIL AAA/Stable’. Additionally, CRISIL withdrew its rating on a separate subordinated debt amounting to ₹1200 crore following its early redemption through the exercise of a call option and receipt of required documentation.
Key Rating Drivers
The ‘CRISIL AAA/Stable’ rating reflects several key factors:
- Strategic Importance and Parental Support: Ongoing strategic importance and strong support from its parent company, ICICI Bank Ltd.
- Market Position: ICICI Pru Life’s well-established market position within the life insurance industry.
- Distribution Network: Well-diversified distribution channels that bolster market reach.
- Capital Adequacy: An adequate capital position provides financial stability.
- Persistency Metrics: Healthy persistency metrics, demonstrating customer retention.
Financial Performance and Metrics
ICICI Pru Life’s financial performance highlights its strong market position:
- VNB Margin: Value of New Business (VNB) margin stood at 24.5% for the first half of fiscal 2026 compared to 22.8% in fiscal year 2025.
- RoEV: Return on Embedded Value (RoEV) stood at 13.1% in fiscal 2025.
- Profit After Tax (PAT): Reported PAT of ₹601 crore in the first half of fiscal 2026, a year-over-year growth of 26%.
- Solvency Margin: Solvency margin remained healthy at 2.13 times as of September 30, 2025.
- Embedded Value: Increased to ₹50,501 crore as of September 30, 2025.
Source: BSE