ICICI Pru announces Rs 867 cr annual bonus for participating policyholders

Around 980,000 customers are likely to benefit from this bonus

Private sector life insurer ICICI Prudential Life Insurance has announced an annual bonus of Rs 867 crore, up 10 per cent from last financial year, for all eligible participating policyholders for FY21, the highest ever bonus declared by the insurer.

“All participating policies in force as of March 31, 2021, are eligible to receive this bonus and will be added to the policyholders’ benefits,” the company said in a release.

Bonus is the share of profits generated by the company's participating policyholder's funds which are added to their guaranteed maturity benefits, thus enhancing the corpus.

Around 980,000 participating holders are likely to benefit from this bonus.

“The stringent investment philosophy of the company has ensured zero defaults in its portfolio since inception and across market cycles. As of March 31, 2021, 96.8 per cent of the fixed income portfolio is invested in sovereign or AAA-rated paper”, the company said in its statement.

The insurer has been declaring a bonus for 15 straight years, underlining the customer-centricity and long-term investment approach to deliver superior risk-adjusted returns to policyholders.