The Ice Dagger is not a weapon, but an icon of Ulric as the savagery of the piercing winter chill. It is usually worn on a chain around the neck.
Source: Warhammer Fantasy: 6th Edition
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The Ice Dagger is a powerful icon of Ulric's wrath, and the Priest draws strength from the faith and courage of those around him. The Priest bearing the Ice Dagger may add the current rank bonus of the unit he accompanies to the Power Level of his Prayers. The rank bonus may only be added once; there is no further bonus for additional Ice Daggers.