Fitch affirms ICICI Pru Life Insurance at IFS 'AAA(ind)'

Fitch Ratings has affirmed India-based ICICI Prudential Life Insurance Co Ltd's (ICICI Prudential Life) national Insurer Financial Strength (IFS) rating at 'AAA(ind)' with stable outlook.The rating continues to reflect the ongoing operational and capital support received from the company's strongly rated shareholders, the currently very strong capitalisation, the important market position built by the company in the last seven years and the company's strong focus on introduction of best business practices, a release said.

As the majority of its business is unit-linked, Fitch believes that ICICI Prudential Life continues to have significant exposure to investment market volatility, both in terms of fee income and levels of new business.
 
ICICI Prudential Life was formed in 2000 as a 74%/26% joint venture between the Indian development financial institution ICICI Ltd (later merged with ICICI Bank Ltd; rated international Long-term Issuer Default rating (IDR) 'BBB ', Stable Outlook (BBB minus)) and Prudential Plc of the UK (Prudential Plc, rated Long-term IDR 'AA', Stable Outlook). Fitch maintains its view that ICICI Prudential Life benefits from the capital and other resources and expertise of its shareholders.
 
According to Fitch even though the company has yet to record life technical profits, it is only a matter of time before the portfolio of existing business will start to release profits. More than 90% of premiums are from unit-linked business, which forms the core of ICICI Prudential's business.