ICICI Prudential to make profits sooner than expected: CEO
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Last Updated: Sunday, January 10, 2010, 11:11
  
Mumbai: ICICI Bank's life insurance arm, ICICI Prudential has chalked out strategies for business turn around which includes introducing an array of cheaper insurance products in the market in near future, a top official said.

The private life insurer, which posted a loss of Rs 780-crore in FY09, has devised schemes to turn its business into profitability "sooner than expected" in the period ahead, its Managing Director and CEO, V Vaidyanathan said.

"We expect a 30 percent growth in the fourth quarter (in FY10). The trend is looking good... we have taken a number of steps, which will play out soon on growth as well as profitability...we will be profitable sooner than expected, definitely," Vaidyanathan told reporters here.

With an expected substantial economic recovery in 2010, insurance players hope to mobilise a bigger share of the domestic savings in the country, by increasing penetration to semi-urban and rural areas.

"Soon, insurance companies will enter the profit zone and many will get listed. That's a big shift from being unlisted, and so will be even more exciting," Vaidyanathan said.

In a bid to attract more customers, ICICI Pru has plans to introduce new low charge and comprehensive insurance products for emerging segments such as children, health and pension in the near future, he said.

"Very soon we will be introducing our low charge products in the market. We are confident that our topline will grow from here," Vaidyanathan said.

The company is one of the largest health players amongst life insurance companies with over 10 lakh policies, with the firm's health annualised premium earnings witnessing a 14 percent growth in the first half of FY10, he said.

As part of its business strategy, ICICI Prudential was also looking at forging new partnership models in the country in the foreseeable future in the areas of marketing and distribution of products, Vaidyanathan said.

"Presently, we have a good distribution network with 2,000 offices across the country. But insurance is not a game of branches but reach. We will increase our reach through the new partnership models," he said.

The company presently uses the conventional model of agency network through a combination of bank partners, corporate agents, brokers and own channels," Vaidyanathan said.

PTI


First Published: Sunday, January 10, 2010, 11:11


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