ICICI Prudential Life Insurance

News About ICICI Life Insurance

• SBICAP Securities Places Buy Call on ICICI Prudential Life Insurance

  SBICAP securities has recently placed a buy call on the stocks of ICICI Prudential Life Insurance and has determined a total target price of Rs.450. The current price of ICICI Prudential Life Insurance in the market stands at Rs.345.90. The brokerage has given the whole affair a stipulated time period of one year by which ICICI Prudential Life Insurance is expected to reach the predefined target set.

  The new premium data released by ICICI Prudential Life Insurance reveals a definite growth in their business since the last few years. The company’s individual savings business has not been flourishing for a long time and it is facing a few difficulties pertaining to numerous external as well as internal factors. Given its ULIP-oriented product mix, the focus has primarily been directed towards a lot of HNI and affluent customers. This resulted in the volatile market impacting ICICI Prudential Life Insurance gravely and the increasing pressure from the higher management to reduce the surrenders by sensitizing that distributors also had a negative impact on the overall business growth of the company.

  Multiple initiatives have been taken by the insurance company which includes an increasing focus on the mass affluent segment of the society, offering a product that demands monthly premium payment, and so on.

  

  12 March 2019

• ICICI launches new fixed deposit plan with free term insurance and other benefits

  ICICI Bank, one of the leading banks of India, has launched a new fixed deposit plan called FD Xtra. The scheme comes with additional perks like free term life insurance and auto investments in mutual fund SIPs. The move comes after the announcement of the interim union budget of 2019 where the TDS limit on bank deposit has been proposed to be increased from Rs.10,000 to Rs,40,000.

  FD Xtra comes with innovative fixed deposit and recurring deposit plans which will be available to the customers soon. The plan also gives the account holders an option to take the maturity amount in instalments. Pranav Mishra, the head of Retail Liabilities Group at ICICI Bank, stated that the deposits cater to different life-goals of customers like financial security with a term plan, option of investing in mutual funds or planning for retirement, etc. FD Xtra comes in three variants i.e. FD Xtra-FD Life, FD Xtra-FD Invest, and FD Xtra-FD Income.

  

  07 February 2019

• ICICI Prudential Life Insurance reveals updated business trend for December 2018

  In its January 2019 update, ICICI Prudential Life Insurance has divulged its annual premium equivalent (APE) and retail weight received premium (RWRP) trend for December 2018.

  The business contracted by 5 percent y-o-y in its weighted retail premium (WRP). However, overall APE grew by 3 percent according to the Dec-18 trend. The decrease in individual WRP and increase in APE growth rate might be a result of the company’s recent decision to shift focus to selling ULIPs through SIP form since November 2018.

  ICICI prudential recently cut down their growth expectations to 3 percent contraction in FY19 while 8 percent APE growth is expected in FY20F.

  

  18 January 2019

• Insured Individuals to Receive Refund from ICICI Prudential Life Insurance Company

  ICICI Prudential Life Insurance Company has been directed by the Office of Insurance Ombudsman to pay Rs.12.50 lakh in addition to interest to Dr Jai Prakash Agarwal – the individual who bought an ICICI Prudential Premier Life Gold Plan. He had paid 3 annual premiums between 2008 and 2010 which amounted to Rs.12.50 lakh in total. The insurer went for unilateral foreclosure of the plan and paid Rs.93,791.85 to Mr Agarwal through cheque in July 2017. He did not even receive a prior notice regarding the foreclosure before he received it. Since Mr Agarwal tried to revive the policy and the company did not concede his request, he approached the Ombudsman via a consultancy services company called Athasniya & Athasniya Advisors. Mahesh Athasniya, the consultancy Managing Director, said that the case was a success when the insurer was directed to refund the whole amount that Agarwal had paid, as well as an 8.25% interest on the whole amount.

  

  31 December 2018

• Insured Individuals to Receive Refund from ICICI Prudential Life Insurance Company

  ICICI Prudential Life Insurance Company has been directed by the Office of Insurance Ombudsman to pay Rs.12.50 lakh in addition to interest to Dr Jai Prakash Agarwal – the individual who bought an ICICI Prudential Premier Life Gold Plan. He had paid 3 annual premiums between 2008 and 2010 which amounted to Rs.12.50 lakh in total. The insurer went for unilateral foreclosure of the plan and paid Rs.93,791.85 to Mr Agarwal through cheque in July 2017. He did not even receive a prior notice regarding the foreclosure before he received it. Since Mr Agarwal tried to revive the policy and the company did not concede his request, he approached the Ombudsman via a consultancy services company called Athasniya & Athasniya Advisors. Mahesh Athasniya, the consultancy’s Managing Director, said that the case was a success when the insurer was directed to refund the whole amount that Agarwal had paid, as well as an 8.25% interest on the whole amount.

  

  27 December 2018

• Net Profit of ICICI Prudential Life Insurance for Q2 at Rs.300 Crore

  ICICI Prudential Life Insurance, a private life insurance provider - has recorded its net profit for the September quarter to stand at Rs.300 crore. This marked a drop in the net profit by 28.5% on an year-on-year basis due to a higher new business strain. A new business strain generally arises when the premium paid after the completion of a contract is not sufficient to cover the initial expenses which includes acquisition costs and any mathematical reserve that the insurer might need to set up at that point. According to the Managing Director and Chief Executive Officer at ICICI Prudential Life Insurance, N. S. Kannan, the value of new business has witnessed a growth by 41.5% on an year-on-year basis to amount to Rs.590 crore during the first half of the financial year 2018-19. He has further explained that despite the volatile nature of the markets, the opportunities in both protection and savings continue to increase for life insurance providers. Kannan also addressed the crisis due to the defaults in repayment by the Infrastructure Leasing & Financial Services (IL&FS) Group stating that ICICI Prudential Life Insurance does not have any exposure to the group.

  Furthermore, the net earned premium of ICICI Prudential Life Insurance witnessed a growth by 16.2% on an year-on-year basis with Rs.7,601 crore during the second quarter of the current financial year. On the other hand, the investment income of the company reduced by 54% to Rs.1,370 crore during in the second quarter of the current financial year owing to the volatile market conditions. The annualised premium equivalent (APE) of the company has witnessed a growth by 6.2% percent on an year-on-year basis to stand at Rs.1,985 crore in the second quarter of FY 2018-19. In terms of the product mix, 85% of it is unit-linked insurance, 8% is protection, and the rest are other traditional products. During the first half of the financial year 2018-19, protection APE registered a growth of 77.3% on an year-on-year basis to stand at Rs.266 crore, while the 13th month persistency was recorded to be steady at 85.2% at the same period of time. The 49th month persistency increased to 63.7% in the first half of the current financial year as opposed to the recorded 59.8% in the first half of the previous financial year. The assets under management (AUM) of ICICI Prudential Life Insurance witnessed a rise by 12% on an year-on-year basis to remain at Rs.1.46 lakh crore. On the other hand, the life insurer has announced an interim dividend of Rs.1.60 for every share.

  

  29 October 2018

• ICICI Have Three Years to Reach 25% Public Holding Norm

  ICICI Prudential Life Insurance and its promoters have 3 years to meet SEBI’s public holding norms, according to a report.

  ICICI Bank and Prudential Holdings’ shares in the company will be reduced following their IPO, with ICICI Bank holding 54% and Prudential holding 20%.

  The IPO, set for the 19th-22nd of September, 2016, will see the bank dilute 12.63% of its stake in the life insurance company.

  The ICICI CEO and MD, Ms. Chanda Kochhar, has stated that the bank’s long term plan is to divest some of its stake in the life insurance company. She further stated the bank is working towards achieving the new norms set out for IPO’s for insurance companies in 2015, with the life insurer now ready to be listed on the exchanges.

  

  16 September 2016

• ICICI stakes sold to insurance firms

  Private sector ICICI Bank has sold stakes from its insurance ventures. ICICI Lombard, which is the general insurance arm, sold 9% of its stakes, while from ICICI Prudential 2% stakes amounting to around Rs 2,200 crore were sold. The transfers were completed on March 31, 2016.

  In a statement issued, ICICI Lombard General Insurance Company sold 9% of its shareholdings to Fairfax Financial Holdings, its joint venture partner. An additional 9% stakes, estimated to around Rs 1,550 crore, was acquired by Prem Watsa-run Fairfax Financial Holdings. Post this transaction, the company values at Rs 17,225 crore. The Fairfax holding in ICICI Lombard has gone up to 35%.

  ICICI Bank, in another stake transfer, sold ICICI Prudential Life Insurance Company’s 2% stake to Compassvale Investments Pte Ltd. Compassvale Investments is an indirectly wholly-owned subsidiary of Temasek, which is Singapore-based investment Company. ICICI Bank received Rs 650 after this stake transfer, valuing the company at Rs 32,500 crore.

  After the completion of stake transfer, ICICI Bank will have 68% of share holdings in both the insurance arms. The foreign joint venture partner, Prudential Plc, will maintain its current holding which is approximately 26%

  

  11 April 2016

• ICICI Lombard to Settle 8.5 Lakh Claims This Financial Year

  A senior ICICI Lombard official said the insurer would settle 8.5 lakh motor insurance claims during 2016-17. Last year, the company settled 7.4 lakh claims in the segment.

  The number of claims are reported to have gone up especially after the floods in Tamil Nadu in November 2015. Claims under the non-life insurance in general is reported to be around Rs. 700 crore because of the Tamil Nadu floods, ICICI Lombard General Insurance Chief Underwriting, Claims and Reinsurance, Sanjay Datta told PTI.

  A majority of the claims that are likely to be settled in this fiscal fall under the own-damage category. ICICI Lombard gets around 45 per cent of its total premium collection from motor insurance.

  

  23 January 2016

• FIPD to take call on 14 FDI proposals on January 14

  The Foreign Investment Promotion Board (FIPB) announced that it will take up 14 foreign investment proposals on January 14. The FDI proposals include ICICI Prudential Life Insurance, ICICI Lombard General Insurance Co., drugmaker CIPLA and Euronet Services India among others.

  The board, which recommends foreign investment proposals for government approval, is scheduled to meet next week for the first time in 2016. The panel, headed by Economic Affairs Secretary Shakikanta Das, had cleared four investment proposals worth Rs 1,810 crore at the last meeting on December 29 2015 and deferred the decision to increase foreign shareholding from 26 per cent to 49 percent on a further four investment proposals.

  

  14 January 2016