| Shikha Sharma in Calcutta on Wednesday. A Telegraph picture
Calcutta, Aug. 20: ICICI Prudential Life Insurance has decided to expand its capital base by the end of the current financial year.
ICICI Bank and Prudential plc hold 74 per cent and 26 per cent stake, respectively, in the company’s Rs 525-crore equity.
Shikha Sharma, managing director and CEO, said, “We will infuse fresh equity at the end of the current financial year to manage our increased business.”
The private insurer has decided to add 18 new branches in 2003-04, after which it will slow down the branch expansion programme. Currently, it is present in 34 cities.
Sharma today launched two products – SecurePlus and CashPlus — to enable customers to withdraw maturity proceeds in full or in installments over three to five years. CashPlus scheme allows withdrawals each year from sixth year onwards.
Following the launch, the company is expecting a migration of policyholders to these products.
“We see that 70 to 75 per cent of the products in the long run will be unit-linked,” Sharma said.
The unit-linked products have contributed Rs 189 crore premium to the company in the last financial year comprising 52 per cent of its business.
Commenting on lapsed insurance policies, Sharma said it was below the stipulated 15 per cent limit. According to the guidelines of Insurance Regulatory Development Authority, insurance lapse should be kept below 15 per cent of the total policies issued.
The company has generated Rs 70 crore by selling 51,000 new policies in the first quarter – a 27 per cent growth over the corresponding quarter of the previous year.