Prudential bullish on India: Video

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Prudential Plc group chief executive, Mark E Tucker, today said its insurance and asset management joint ventures with ICICI Bank were open to acquisitions for growth.

"We would be looking for opportunities for inorganic growth in both insurance and mutual fund. We don't rule it out since we look to ensure we add value," Tucker told reporters a day before the board of Prudential meets in Mumbai to discuss about its Asian business and opportunities for growth. Prudential board is meeting for the first time since it exited the country 158 years ago.

Asia contributes almost 50 per cent to Prudential's total business, up from less than 1 per cent in 1994-95. The contribution of India to Prudential's operations is just 1 per cent. Prudential earned gross premium of pound 15.22 billion in 2005.

Managing directors of Prudential's other Asian operations are also in Mumbai and have been making presentations on their respective businesses to the UK company's board members.

Chief executive officers of ICICI Prudential Life Insurance Company and ICICI Asset Management Company too made presentations to Prudential's board members.

Prudential said it will strive to maintain its leadership among private life insurers in India and has "great expectations for future growth" given the significant opportunities in India.

Tucker said Prudential will consider increasing its stake in ICICI Prudential to 49 per cent from 26 per cent once regulations permit it.

"Our mandate to Indian businesses is to continue to keep doing well. For the asset management company, our aim is to push the gap between us and the number two," Tucker said.

Speaking about pension reforms, Tucker said "We look towards liberalisation of the corporate and the individual pension space as there are opportunities on both side."

About Prudential's Asian operations, Tucker said, "Asia is delivering consistently strong economic growth, savings rate are on average twice the rate of UK and US, and markets are liberalising. However in terms of cash and statutory profits, Singapore, Malaysia and Hong Kong business produce 75 per cent of business from the Asian region.