ICICI Prudential Life Insurance has been reported to initiate the process of selling approximately 5 percent of the stake. People involved in this matter said that the process is in initial stages, and several other firms involved in pension plans and investment are going to take this little slice of ICICI Prudential Life Insurance.
As per the reports, ICICI Prudential Life Insurance stake, which is rumored to go on sale, has been estimated to have a value of $6 billion or Rs. 36,000 crores.
There is no official word from the ICICI Bank, however people involved in it said, “The deal, if any, will only be concluded after the changes in foreign investment policy in the insurance sector are passed by both houses of parliament.”
ICICI Prudential Life Insurance is among the top private sector insurance companies, and it achieved a profit of nearly Rs 462 crores in the fourth quarter last year, as compared to the Rs. 428 Crores last year during the same period.
Government has also increased the foreign investment limit from 25% to 45% this year. However, it is yet to be passed by both the houses of parliament.
While, on the contrary, another leading insurance company in India, LIC has seen a significant slip in overall performance. The market share slide down by 70 percent, whereas the business premium felt steep by 21 percent.
Reports suggest that the LIC secured a premium of Rs 51,667.07 crores this year, as compared to 65,774.47 crores during the same period of April-December last year. LIC saw an overall decline of 21.07 percent.
The state owned firm had a new business premium of Rs 90,123.75 crores in the last fiscal year, and generated nearly Rs. 5,858,55 crores with the inclusions of 19.14 lakh policies.
However, other 23 private sector insurance companies registered an uplift of nearly 16 percent generating Rs. 22,110.32.