The Hindu Business Line : ICICI insurance arms `not yet mature' for IPOs

(From right) Mr Dan Bardin, MD, South & Greater China, Prudential Corporation Asia; with Mr K. V. Kamath, MD & CEO, ICICI Bank; and Ms Shikha Sharma, MD & CEO, ICICI Prudential Life; at a press conference in Mumbai on Tuesday. - - Paul Noronha

Mumbai , Sept. 21

ICICI Prudential Life Insurance and ICICI Lombard General Insurance Company will both have to reach an overall market share of 10 per cent and become `relevant players' in the insurance market, before they come out with initial public offerings, according to Mr K.V. Kamath, Managing Director and Chief Executive, ICICI Bank.

At present, ICICI Pru has an overall market share of 5.6 per cent and a market share of 34 per cent among the private sector participants, while ICICI Lombard has an overall market share of 4.50 per cent and a share of 22 per cent among private insurance players, he told newspersons on the sidelines of an ICICI Prudential Insurance conference here on Tuesday.

ICICI Prudential has sold one million policies for a sum assured of Rs 22,500 crore and new business premium income of Rs 1,700 crore, as on September 21, 2004.

Mr Kamath said ICICI Bank has aggressive expansion plans and ruled out any acquisitions by the bank or any participation in the consolidation process in the industry. "We are not looking at acquisition and believe that we will grow organically," he said.

A similar strategy will be employed for the bank's international business, which is expected to contribute 20-22 per cent to the topline in next two-three years, he added. The bank has recently applied for offices in Russia and New York, he said.

Referring to the bank's stake in Federal Bank and South Indian Bank, Mr Kamath reiterated,that these stakes were just investments and the bank had written to RBI about its intention to bring down its holding in these banks over the next three years, through market operations.

At present, ICICI Bank holds around 20 per cent stake in Federal Bank and over 10 per cent in South Indian Bank.

Mr Kamath said the bank was currently not reviewing its lending and deposit rates for revisions and future actions would depend on factors such as inflation and oil prices.