ICICI Pru Life to increase capital

Mumbai: ICICI Prudential Life Insurance, the insurance arm of ICICI, proposes to increase its capital from Rs 150 crore to Rs 250 crore in the next fiscal year. The infusion of funds will be done to keep in line with the growth of the business venture.

ICICI Prudential Life Insurance MD Shika Sharma said: We dont need any more funds than the initial Rs 150 crore in this fiscal; we might need Rs 100 crore next fiscal.

The decision to increase capital comes in the wake of the companys rapid business growth and also to adhere to the prudential norms laid down by the Insurance Regulatory and Development Authority. As per the norms, all insurers will have to recapitalise their ventures in proportion to the business growth in order to maintain a solvency ratio of 150 per cent.

ICICI Prudential Life Insurance started operations this year and has offices in nine cities including New Delhi, Mumbai, Kolkata and Chennai. The company proposes to open offices in at least three more cities by March 2002.