ICICI Prudential Life’s 3Q Premiums Rise 28%

The confidence of retail investors contributed to a 28% rise in ICICI Prudential Life Insurance Co.'s [89580] year-on-year total premium growth during the first nine months of the company’s fiiscal year, which ends March 31, 2009, according to the insurer.

The 74%-26% private life joint venture between India’s ICICI Bank and the United Kingdom’s Prudential plc [85925] recorded total premium, including both new business and renewal policies, of 99.18 billion rupees (US$202 million), up from 77.58 billion rupees in the correspondent period of the previous year.

ICICI Prudential Life said that during the period, its renewal premiums rose 75%, totaling 54.27 billion rupees, reflecting the long-term sustainability of the business. It added the premium growth also signifies retail investors trust in the company as they continue to save for their long-term goals through the company’s products, despite the recent volatile market scenario.

In the nine-month period ended Dec. 31, ICICI Prudential Life recorded annualized premium equivalent of 37.62 billion rupees, representing a drop of 3% from the corresponding period of the previous year. Its new business profit rose 18.9% to 7.12 billion rupees, while its assets under management stood at 284.45 billion rupees.

According to ICICI Prudential Life, it captured 12.4% market share of the total life retail market in India during the period, allowing the insurer to maintain its leading position in the country.

Shikha Sharma, managing director and chief executive of ICICI Prudential Life, said the insurer has increased its proximity to its consumers, including those in rural India, through its “extensive distribution network” during the period.

The insurer’s strong renewals are “a true reflection of consumers’ trust in us over the years,” added Sharma.

ICICI Prudential Life has a network of 2,099 offices and 272,920 advisors. It has underwritten mare than 8 million polices since 2000.

(By Rebecca Ng, Hong Kong news editor: [email protected])