ICICI Pru hits lifetime high as CRISIL reaffirms 'AAA' rating on NCDs

CRISIL Ratings reaffirmed 'AAA' rating with a 'Stable' outlook for ICICI Prudential's Non-Convertible Securities worth Rs 1,200 crore

ICICI Prudential Life Insurance Company shares rose 2.5 per cent intraday, registering an all-time high of Rs 787.8 per share on the BSE. At around 1:53 PM, shares of ICICI Prudential were up 2.13 per cent at Rs 784.75 per share on the BSE. By comparison, the BSE Sensex traded 265.28 points (0.3 per cent) higher at 84,809.59 around the same time.

The stock moved after credit rating agency CRISIL Ratings reaffirmed its 'AAA' rating with a 'Stable' outlook for ICICI Prudential Life Insurance Company's non-convertible securities also known as non-convertible debentures (NCDs).

CRISIL Ratings reaffirmed its rating on the Rs 1,200 crore subordinated debt of the company.

While explaining the rationale behind its reaffirmation, CRISIL said, "The rating continues to factor in the strategic importance and support available from its parent, ICICI Bank both on an ongoing basis and in the event of distress; the established market position of ICICI Pru Life; well-diversified distribution channels; adequate capital position; and healthy persistency metrics and profitability."

CRISIL added: These strengths are partially offset by the ability to sustain growth in various segments and challenges in sustaining profitability due to rising competition.

Further, the credit rating agency believes the strong linkage of ICICI Bank and ICICI Prudential Life Insurance implies the support (both financial and board oversight) provided by ICICI Bank to ICICI Pru Life.

While giving a 'Stable ' outlook, the rating agency said that ICICI Pru Life will likely maintain a comfortable cushion in solvency ratio over and above the regulatory minimum on a steady-state basis.

ICICI Pru Life is promoted by ICICI Bank and Prudential Corporation Holdings Ltd (Prudential), a part of the Prudential PLC group of the UK. ICICI Bank and Prudential held 51.22 per cent and 22.05 per cent stake, respectively, in ICICI Pru Life as of June 30, 2024.

The company commenced operations in fiscal 2001 and is among India's leading first private sector life insurance companies. It offers diversified products to cater to the needs of customers across different life stages, enabling them to meet their long term savings, life protection, healthcare, and retirement planning needs.

In the past one year, shares of ICICI Prudential have gained 36.4 per cent against BSE Sensex's rise of 28 per cent.