ICICI Pru tops group insurance league

ICICI Prudential Life Insurance has topped the private life insurance sector in the large-ticket group insurance business with a 30 per cent market share. In a span of three months since it started targeting group business, ICICI Prudential has taken over SBI Life Insurance Company which was the leader in the segment.

"We are leveraging the close ties of the ICICI Bank group in getting corporate superannuation and gratuity accounts," said Shikha Sharma, CEO and managing director, ICICI Prudential.

The latest figures brought out by the Insurance Regulatory and Development Authority (Irda) show that against ICICI Prudential's 30 per cent market share in group business, amounting to Rs 30.2 crore in the first quarter of fiscal 2005, SBI Life has achieved 27 per cent share of the total group pie. In the first quarter, SBI Life mopped up a total premium income of Rs 67 crore. Of this 40 per cent is on account of group business.

ICICI Prudential has bagged ICICI Bank's gratuity business, even as it has been a late entrant into the competitive group insurance segment. "The sales cycle tends to be very long and varies between six and nine months to close a transaction," said Sharma. Moreover, with the rate war rampant in group term, ICICI Prudential has been choosy on the business it underwrites. "Group term is a commodity, and as business is purely rate driven, this is not our focus area," she added.

Speaking on the company's performance for the first three months of the year, Sharma said ICICI Pru achieved a share of 34 per cent among private players, thereby making it a leader in both retail and group segments. ICICI Prudential achieved 244 per cent growth in new business, with first year premium income amounting to Rs 242 crore with the sale of over one lakh policies. The total sum assured amounted to Rs 3,753 crore. With the size of policies increasing, the average premium has risen by 42 per cent to Rs 23,028 crore during the current fiscal against Rs 16,193 crore in the corresponding period last year.

Taking the entire industry inclusive of the Life Insurance Corporation of India (LIC), ICICI Prudential's share clocks to 6 per cent of Rs 3,659 crore in first premium income, while LIC clocked a premium income of Rs 3,014.7 crore. Birla SunLife continued to clock second place among private players with a premium income of Rs 93.6 crore, while Allianz Bajaj ranked third with Rs 65.8 crore premium income.