ICICI Pru plans capital infusion

ICICI Prudential Life Insurance Company is looking at making significant capital infusion during the current financial year to support its expansion plan.

Sujit Ganguli, head-marketing, said, "To support our expansion, there will be requirement of substantial capital infusion. We will be increasing our branch networking significantly over twelve months."

He, however, did not divulge the amount of capital that would be infused. The company had firmed up plans of more than double its branches over the next twelve months.

"Currently, we have 177 offices in 132 cities. We will be increasing the office number by more than 100 per cent," said Ganguli.

The company will be eyeing tier II and tier III cities in a major way. The company has worked out a two-pronged strategy to clock significant growth during the current financial year.

"We will be focusing on both geographical expansion and launching new products for achieving aggressive growth this year," he added.

During 2005-06, the company registered 64 per cent growth in weighted new business premium to Rs 2,412 crore.

Meanwhile, renewal premium income went up by 113 per cent to Rs 1,657 crore in 2005-06, thereby, contributing to around 39 per cent of the total premium.

"The growth in the weighted new business premium was likely to be in line with last year's growth rate," said Ganguli.

Ganguli also informed that during 2005-06, funds under management had increased by 130 per cent to Rs 8,822 crore.

New business achieved profit grew 69 per cent to Rs 528 crore during 2005-06 from previous year's Rs 312 crore, he added.

Ganguli explained that the new guidelines of ULIP products would not have any major impact on their products as they were long-term.

He, however, added that the company would be re-filing around 10 ULIP products to abide by the guidelines.