ICICI Prudential Life completes one year in Dubai
~Continues to sustain a leading position in the Indian life insurance industry~
ICICI Prudential Life’s representative office in Dubai successfully completed one year. The representative office plays a crucial role in enabling the company bridge the gap with its NRI consumers. By being in close proximity to the consumers, it has facilitated many NRIs in meeting their long-term financial goals. ICICI Prudential Life has two representative offices in the GCC region – Dubai and Bahrain.
During the period, the Dubai representative office has facilitated in garnering of over 2500 policies from the region. To further increase consumer convenience in Dubai, ICICI Prudential Life partnered with the UAE Exchange House, one of the largest exchange houses in the Middle East recently. Through this tie-up, the company’s NRI customers will have access to over 65 branches of UAE Exchange for paying their renewal premiums.
Speaking to the media, Mr. Tarun Chugh, Chief- Group Sales and Alternate Channels, ICICI Prudential Life Insurance said, “The Dubai representative office has played a crucial role in the company’s market position in GCC. Through this office, we have been able to spread awareness, among NRI consumers, on the benefits of disciplined savings through life insurance products. We will continue to educate our consumers here about our extensive product portfolio in order to enable them plan for their long-term financial goals, effectively. We will also strengthen our service capabilities to NRI clientele through various touch points in GCC, in order to provide a superior customer service experience.”
Great opportunity for consumers to invest and stay invested in life insurance.
In the current volatile market scenario, some customers may panic and want to redeem their policies. It is important to understand that equity markets pass through various high and low phases. Retail investors normally get carried away with the euphoria and buy when the markets are high and panic and sell when the markets are low, leading to severe erosion of personal wealth. It is critical to understand that life insurance products are designed to tackle these highs and lows, and enable individuals to meet their long-term financial goals. Since consumers invest systematically through regular premiums they are able to average the cost of their investments. Further, we have a sound investment philosophy which is oriented towards safety, stability and long term returns.
As the future of Indian economy continues to be strong, existing policyholders stand to gain over the long-term, by staying with their life insurance plans. Similarly, for retail consumers who do not have adequate life insurance, the current market situation provides an ideal opportunity to start investing in life insurance.
ICICI Prudential Life’s capitalisation, investment portfolio and financial position are very strong
• ICICI Prudential Life continues to be a leading life insurance player with a new business market share of 13.5% for the six months period ending September 30, 2008. This is significantly higher than the company’s market share of 12.7% last year.
• The company’s capital stands at Rs 4,780 crores, as on October 31, 2008, making ICICI Prudential Life the most capitalised Indian life insurer.
• The company’s financial strength has been endorsed through the reiteration of our AAA (ind) rating by Fitch Ratings. This rating signifies the company’s financial ability to meet all their obligations to their stakeholders, including customers.
• The assets held by the company amount to over Rs. 26,820 crores as on October 31, 2008
o This reflects the success of the company’s prudent investment strategy as well as strong growth in renewal inflows during the current year.
o The company’s investment philosophy aims at safety, stability and superior risk-adjusted returns on our investments over the long-term.
• ICICI Prudential Life continues to operate within the stringent investment guidelines and solvency regulations stipulated by the IRDA.
o IRDA does not allow Indian insurers to invest overseas and ICICI Prudential Life does not have any international exposure in their investments
o The company has maintained their solvency ratio well in excess of 150% of the required solvency margin, reflecting its ability to fulfill their liabilities
ICICI Prudential Life in India
ICICI Prudential Life continues to be a leading life insurance player in India. Its new business market share stood at 13.5% as on September 30, 2008. This is significantly higher than the company’s market share of 12.7% for the year ended March 31, 2008.
The company posted a growth of 56% for the half year ended September 30, 2008, garnering total received premium (new business + renewal) of Rs 6,726 crores as against Rs 4,311 crores during the corresponding period in FY2008. Renewal premium, one of the key indicators of long-term sustainability of the business, showed strong growth of 90% and stood at Rs 3,423 crores for H1 FY2009 (six month period ended September 30, 2008). ICICI Prudential Life has underwritten over 12.85 lakh policies and its sum assured in force stood at Rs 182,427 crore for the six month period ended September 30, 2008.
The new business retail weighted premium for the half year ended September 30, 2008 stood at Rs 2,650 crore and increased by 22% as compared to same period in FY2008. The annualised premium equivalent (APE) for the half year ending September 30, 2008 stood at Rs 2,760 crore and increased by 25% as compared to corresponding period in FY2008. The company’s New Business Profit (NBP) stood at Rs 522 crore.
Highlights of H1 FY2009 (six month period ended September 30, 2008)
• Assets held for September 30, 2008 stood at Rs. 30,000 crores
o This reflects the success of the company’s prudent investment strategy, which aims at safety, stability and superior risk-adjusted returns on the investments over the long-term.
o This has also led to the company’s funds performing better than the relevant indices.
• Crossed the 80 lakh policies mark
• Fitch Ratings affirmed the AAA (ind) rating to the company
• Rs 808 crore capital was infused in the company by the JV partners, ICICI Bank Limited and Prudential Plc. in the ratio of their respective holdings (74:26). taking the total capital infused to Rs 4,580 crore
• Strengthened its product portfolio and launched:
o LifeStage Assure, a triple advantage wealth creation product. The product is designed to provide upto 450 % of first year premium guarantee on maturity, to enable consumers to invest in equities without any risk of downside.
o Diabetes Care Active, a unique long-term health insurance plan, combined with a customized wellness program, created exclusively for Type II diabetics and pre-diabetics
o Medi Assure, the company’s first reimbursement product in the health insurance category
• Introduced the e-portfolio statement for consumers. This first of its kind service in the life insurance industry which provide consumers a customized e-statement with their complete investment details on a monthly basis
• Launched the Webchat service for policyholders, enabling consumers seek instant solutions on their policy related queries online. This first of its kind service is available for consumers 24X7 on the company’s website:www.iciciprulife.com
