The board of ICICI Prudential Life Insurance on Tuesday approved raising of ₹1,400 crore through the issuance of non-convertible debentures in one or more tranches over the next 12 months.

The life insurer’s solvency ratio has decreased from 199.4 per cent in the first six months of 2023-24 (H1FY24) to 188.6 per cent in the first six months of 2024-25 (H1FY25).

“The capital raise will augment the solvency base of the company and aid the ongoing business growth,” said Anup Bagchi, MD and CEO, ICICI Prudential Life Insurance, on Tuesday.

The life insurer reported a consolidated net profit of ₹250.99 crore for the second quarter of the fiscal compared with ₹243.88 crore a year ago, a growth of 2.91 per cent.

Consolidated net premium income was ₹10,754.21 crore, up 7.3 per cent from ₹10,022.42 crore. Private market share has improved from 9.2 per cent in H1FY24 to 10.3 per cent in H1FY25.

Bagchi said the impact on the company from the new regulations, including the surrender value changes, will not be material.

“Our available to sell products have been redesigned in line with the new product regulations,” he said adding that the company has been working on various tweaks to the commission structure as well as offering longer tenor and high sum assured products.

“Our assets under management have crossed the ₹3.20 lakh crore mark.”