Date:05/08/2004 URL: http://www.thehindubusinessline.com/2004/08/05/stories/2004080501620800.htm

Back ICICI Pru sees need to infuse Rs 200 cr more — Foreign partner ready to raise stake to 49 pc

Our Bureau

Ms Shikha Sharma, CEO and MD, ICICI Prudential Life

Hyderabad , Aug 4

ICICI Prudential Life Insurance expects capital infusion of Rs 150 crore to Rs 200 crore during the current fiscal year in view of the anticipated growth level in business volumes.

Currently, the equity base of the life insurance joint venture between ICICI Bank and the UK-based financial services major Prudential Plc, stands at Rs 675 crore, with ICICI Bank holding 74 per cent and Prudential Plc 26 per cent.

Addressing newspersons here on Wednesday while launching two new products, the ICICI Prudential Chief Executive Officer and Managing Director, Ms Shikha Sharma, said assuming a growth of over 100 per cent in business the company would require capital of Rs 150-Rs 200 crore in the current year.

However, declining to divulge further details on the exact size and time of capital infusion, which might amount to making forward looking statement, Ms Sharma said both the partners were committed to meeting the needs of business growth.

On the Government's announcement pertaining to increase in the FDI limit in life insurance industry to 49 per cent, she said their foreign partner was ready to enhance the stake to 49 per cent as and when the decks were cleared.

In fact, as per the MoU signed initially, both ICICI Bank and Prudential Plc agreed for offering 49 per cent to the foreign partner when permitted by the Indian regulators, she said.

Unveils new products

Spurred by the response to its unit-linked products, ICICI Prudential has announced the launch of two new products - Life Time-II and Premier Life.

Of the Rs 1,800-crore funds currently under management, the funds under unit-linked products have recently crossed the Rs 1,000-crore mark. Of this, nearly half was invested in income funds, 31 per cent in balanced funds, 19 per cent in growth funds and a small portion in short-term debt, Ms Sharma said.

She said the company based on its customer interaction realised that there was a need for a variety of products that would offer slightly varied premium payment options and flexibilities.

Premier Life, for instance, offers stability and protection for a long time to individuals, even while they pay premium for a short period.

"Such flexibilities and options make it an ideal product for people who might otherwise have an irregular income - be it artistes, professionals, businessmen or sportspersons," Ms Sharma said.