The Hindu Business Line : ICICI Pru Life hikes capital by Rs 245 cr

Mumbai April 4 ICICI Prudential Life Insurance Company has infused Rs 245 crore and taken its capital base to a total of Rs 2,060 crore, the highest among the domestic life insurers.

This was the fourth equity hike in the last financial year. The two promoters, ICICI Bank and Prudential plc, contributed to the capital in their existing proportions of 74:26, respectively

The company last hiked its capital base by Rs 230 crore in January. In the last financial year, there has been a total capital infusion of Rs 875 crore.

"The company has been growing at 100 per cent and the capital will be utilised for expansion, funding new business and meeting the solvency norms stipulated by the regulator," said Mr N.S. Kannan, Executive Director, ICICI Prudential Life Insurance. He also added that the hike had been planned based on anticipated business requirements.

In the recently concluded financial year, the company expanded its distribution network from 177 branches in March 2006 to 500 branches. The agency force has also been more than doubled from 72,000 agents to 200,000 agents.

"For consumers, this large capital base is one of the most important indicators of the solvency of the company and its ability to meet all its policyholder commitments," said a press release from the company.

Mr Kannan said the company would assess future capital requirements as well as the scale of expansion based on the evolving needs of the business.