Calcutta, Dec. 4: ICICI Prudential Life Insurance plans to hike its equity base by Rs 50 crore by the end of the current fiscal or the beginning of the next.
ICICI Prudential’s equity base stands at Rs 325 crore, with ICICI Bank and Prudential Plc holding 74 per cent and 26 per cent respectively.
“Life insurance is a sector that requires heavy capital inflows in the first five to seven years. Given the long-term nature of the business, it is essential to commit resources up front to ensure success,” said Saugata Gupta, chief (marketing services).
Last September, the company increased its capital base by Rs 95 crore taking the total paid-up equity capital to Rs 325 crore. Earlier, in March and June, the company had injected Rs 80 crore in two tranches.
The company has crossed the 200,000 policy mark with a sum assured of over Rs 5,400 crore and premium income in excess of Rs 280 crore. New age policies, such as SmartKid, retirement solutions and market-linked policies now contribute a significant portion of its business.
The company has adopted a multi-channel distribution strategy leveraging bancassurance, corporate agents and direct marketing to expand its reach.
ICICI Prudential Life Insurance has distribution agreements with banks such as ICICI Bank, Citibank, Allahabad Bank, Federal Bank, South Indian Bank, Bank of India and Punjab and Maharashtra Co-operative Banks as well some corporate agents.