ICICI insurance JVs to float when spoils touch 10%

ICICI Lombard General Insurance Company and ICICI Prudential Life Insurance Company will go public when the respective companies' overall market share doubles to 10 per cent.

ICICI Bank managing director and CEO K V Kamath further explained that the promoters would consider an initial public offering (IPO) when companies achieve relevant size. "We need to get an overall 10 per cent market share to become a relevant player," said Kamath.

Today ICICI Prudential Life has 5.6 per cent of the overall life insurance market while that of ICICI Lombard is at 4.5 per cent in the non-life industry. ICICI Bank holds majority stake of 74 per cent in both the joint ventures, which as per Insurance Regulatory and Development Authority has to be brought down to 26 per cent by the 10th year.

"Today ICICI Lombard is profitable and has exceeded our targets in terms of return on equity. We would like to wait and see how the company performs in the next two quarters, but nothing is eminent," said Kamath.

ICICI Prudential Life has become the first private life insurer to cross the milestone of issuing 10 lakh policies. "Our sum assured has crossed Rs 22,000 crore with new business income at Rs 1,700 crore," said Shikha Sharma, managing director, ICICI Prudential Life.