ICICI Prudential Life Insurance launches new debt fund to build long-term wealth

May 26, 2023: ICICI Prudential Life Insurance launched a debt fund on Monday which will enable customers to lock-in their investments at current high interest rates, build long-term wealth and achieve financial goals.

The prevailing interest rate regime provides customers with an excellent opportunity to invest in the debt fund - ICICI Pru Constant Maturity Fund - the first such fund in the life insurance market. With interest rates closer to their peak, any fall in interest rates makes debt instruments attractive as an investment option for customers. This is due to the inverse relationship between prices of debt instruments and interest rates – their prices increase when interest rates fall thus benefitting customers who have invested in these instruments.

This fund is available for investments with the Company's flagship Unit Linked Insurance Plans (ULIP). ULIPs provide customers with a unique proposition of life cover, financial security to the family and facilitate building wealth over the long-term. ICICI Pru Constant Maturity Fund is available with Unit Linked Products from May 15, 2023.

Investments in ULIPs provide tax benefits. If annual investments made are up to ` 2.5 lac and with a life cover of 10 times the annual premium, maturity proceeds are tax-free for customers.

How to invest?

Customers have the option of investing in this fund through the Company’s ULIP offerings like ICICI Pru Signature, ICICI Pru Smart Life and ICICI Pru LifeTime Classic. Customers can reach out to their advisors or visit the Company website (www.iciciprulife.com) to buy these plans.

Mr. Arun Srinivasan, Head of Fixed Income, ICICI Prudential Life Insurance said, "We are excited to launch a unique debt fund which makes us the country's first insurer to offer such a fund in the fixed income ULIP space.
With the interest rate cycle closer to its peak, it is a great opportunity for customers to channelise investments to the ICICI Pru Constant Maturity Fund. We suggest investors apportion a share of their savings to ULIP debt funds for capital preservation and long-term wealth creation.

By investing in this fund customers will be able to lock-in their investments at the high current interest rates and benefit from increasing NAV of the fund since bond prices are expected to rise over time.

Customers need to invest for the long-term and make regular contributions to achieve their financial goals such as buying the dream house or leading a financially independent retired life. Since this investment is locked up for a minimum of 5 years with the flexibility to switch between fund options, it would enable investors to build wealth.

All our debt funds have consistently outperformed their respective benchmarks since inception. Significantly, we have a track record of zero non-performing assets (NPAs) in our portfolio across market cycles.”

Mr. Srinivas Balasubramanian, Head of Products, ICICI Prudential Life Insurance said, "We are delighted to offer customers the industry’s first-of-its-kind debt fund. The ICICI Pru Constant Maturity Fund will be available with our linked savings products. Customers can invest their premiums in this fund to take advantage of the high interest rates prevailing and lock in their investments for the long-term.

ULIPs also offer customers a tax-efficient mode of building long-term savings as they can invest up to ` 2.5 lac annually for the duration of the policy and take home a tax-free maturity amount.

Besides steady and stable returns, it offers customers a life cover which financially secures their loved ones. Customers trust us due to our track record of delivering on promises made for over two decades."

Track record of ICICI Prudential Life Insurance's existing Debt Funds

5-year returns
10-year returns
Since inception returns
ICICI Prudential Life Insurance Debt Funds
Morningstar
Ratings#

Fund returns (%)*
Benchmark returns
(%)*
Fund returns (%)*
Benchmark returns (%)*
Fund returns (%)*
Benchmark returns
(%)*
Income Fund
4
8.02%
7.02%
9.10%
7.81%
9.34%
7.84%
Money Market Fund
5
6.05%
5.51%
7.36%
6.79%
7.74%
7.13%
Secure Opportunities Fund
4
NA
NA
NA
NA
7.98%
7.38%

*Adjusted for FMC
In addition to the impressive track record of our existing debt funds, ICICI Prudential Life had total Assets Under Management (AUM) of ` 2.56 lac crore as of 30th April 2023, signifying the trust reposed in the Company by its customers.

About ICICI Prudential Life Insurance

ICICI Prudential Life is promoted by ICICI Bank Limited and Prudential Corporation Holdings Limited. The Company began operations in fiscal 2001 and has consistently been amongst the top private sector life insurance companies in India on a Retail Weighted Received Premium (RWRP) basis. The Company offers an array of products in the Protection and Savings category which match the different life stage requirements of customers, enabling them to provide a financial safety-net to their families as well as achieve their long-term financial goals. The digital platform of the Company provides a paperless on-boarding experience to customers, empowers them to conduct an assortment of self-service transactions, provides a convenient route to make digital payments for purchasing and making renewal premium payments, and facilitates a hassle-free claims settlement process. On March 31, 2023 the Company had an AUM of₹2.51 lac crore and a Total Sum Assured of₹29.51 lac crore. ICICI Prudential Life is listed on both the National Stock Exchange (NSE) Limited and the BSE Limited.

Disclaimer

Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for insurance and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology our exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our growth and expansion in domestic and overseas markets, technological changes, our ability to market new products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in insurance regulations and other regulatory changes in India and other jurisdictions on us. ICICI Prudential Life insurance undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. This release does not constitute an offer of securities.