ICICI Pru Life to focus on pure term policies

Life insurance major ICICI Prudential Life Insurance Company will focus on pure term plans which offer better margin.
"We will focus on pure term plans. Currently, it is just at 2.5 per cent of total first premium business but growing fast," ICICI Pru Life executive director Sandeep Batra told PTI.
Currently, ULIPs constitute around 80 per cent of the total first premium income, he said.
Margins in pure term plans are always higher than Unit Linked Investment Plans (ULIP) or traditional endowment products, he added.
According to estimates insurance penetration is very low and the situation is much worse for pure term, company officials said.

ICICI Prudential will hit the markets with its initial public offering (IPO) worth Rs 6,057 crore on September 19.

ICICI Bank is diluting 12.63 per cent stake through this offer.
The insurance major will have to increase the free float to 25 per cent in the next three years as per regulation from around 19 per cent it will attain post listing, including Tamasek and Premji foundation totalling about 6 per cent, Batra said.
ICICI Bank will continue to retain its stake in excess of 51 per cent and keep the life insurance company as its subsidiary, he added.
Post listing, ICICI Bank's holding in the insurance venture will get reduced to 55 per cent from 67 per cent.

Prudential Corporation currently holds 26 per cent in the company but it may get lowered if the promoters take step to increase the free float to 25 per cent.
Meanwhile, anchor investors will be disclosed by tomorrow evening. The issue will open on September 19 and the price band is Rs 300-334 per equity share of Rs 10 each.