Business Daily from THE HINDU group of publications
Monday, Sep 04, 2006
Business Daily from THE HINDU group of publications Monday, Sep 04, 2006 |
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Money & Banking - Private Banks
Nilanjan Dey
The concept of valuation in the case of ICICI Pru may well have an effect for ICICI Bank, which is the principal stakeholder in the life insurance venture along with the UK-based Prudential.
Kolkata , Sept. 3 ICICI Prudential Life Insurance Co's valuation has been fixed at around Rs 8,000 crore, an assessment that independent valuers have felt may well go up to Rs 12,000 crore under current circumstances. The company, which has a capital base of over Rs 1,300 crore and for which the sum assured in force stands at Rs 56,000 crore-plus, had recently gone in for a valuation exercise, which has led to the figure in question. Mr Prasun Sikdar, who heads sales at ICICI Pru, said its assets under management now stand at over Rs 10,000 crore. Moreover, there are plans to widen the scope of operations, courtesy greater market penetration through new products and a geographical expansion programme. "Our valuation, worked out by independent sources, is in the range of Rs 8,000-12,000 crore," Mr Sikdar said, adding the company has maintained its position at the top of the insurance league tables. For the quarter ended June, it clocked over Rs 800 crore in weighted new business premium even as more than three lakh policies were written.
ICICI Bank to gain
The concept of valuation in the case of ICICI Pru may well have an effect for ICICI Bank, which is the principal stakeholder in the life insurance venture along with the UK-based Prudential. ICICI Bank, thanks to its firm 74 per cent ownership of the company, is being seen by market analysts to gain from the holding. The bank's stock, incidentally, is currently trading around Rs 600 on the bourses; on Friday, it resulted in a turnover of roughly Rs 100 crore on the NSE. A number of companies, which have strategic investments in the insurance sector, have expressed the hope that they will stand to gain when valuations become critical from the point of view of the stock market. At the moment, however, no insurance company is a listed entity - a situation that investment circles feel will begin to change in a few years. These include a range of companies, from Bajaj Auto, an index heavyweight and promoter of a joint venture with Allianz, to battery manufacturer Exide Industries that has a stake in the insurance venture with ING.
More Stories on : Life Insurance | Private Banks | ICICI Bank Ltd
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