ICICI Prudential Life hikes capital base
ICICI Prudential Life, for the ninth time, hiked its capital by Rs 50 crore to Rs 675 crore in view of booming business.business Updated: Apr 02, 2004 12:59 IST
ICICI Prudential Life has hiked its capital by Rs 50 crore to Rs 675 crore in view of booming business.
Hiking the capital for the ninth time since its inception in December 2000, the 74:26 joint venture between ICICI Bank and Prudential Plc said the additional capital would be used for meeting capital adequacy norms stipulated by the Insurance Regulatory and Development Authority (IRDA).
"ICICI Prudential has grown exponentially over the past three years," its managing director Shikha Sharma said in a statement.
In the life insurance business, expenses were incurred up front while the revenue (in the form of premia) stream was staggered, and this necessitated a life insurance company to regularly infuse capital during the first five-yearsyears in order to support the growth of business.
With an authorised capital of Rs 1,200 crore, the second generation life insurer's premium mop up had crossed Rs 1,000 crore in December 2003.
The insurance company, which expanded to 54 locations across the country, so far sold over 5.50 lakh policies for a sum assured of over Rs 13,000 crore.