MIRA INFORM REPORT

 

 

Report Date :

18.07.2013

 

IDENTIFICATION DETAILS

 

Name :

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

 

 

Registered Office :

ICICI Prulife Tower 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

20.07.2000

 

 

Com. Reg. No.:

11-127837

 

 

Capital Investment / Paid-up Capital :

Rs. 14288.491 millions

 

 

CIN No.:

[Company Identification No.]

U66010MH2000PLC127837

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMI03877G

MUMI07366C

 

 

PAN No.:

[Permanent Account No.]

AAACI7351P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Life Insurance and Pension Services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (72)

 

RATING

STATUS

PROPOSED CREDIT LINE

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

 

Maximum Credit Limit :

USD 198000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a joint venture between ICICI Bank and Prudential of UK.

 

It is a well established and reputed company having good track record. There appears slight dip in Premium income during the current year.

 

However, general financial position of the company appears to be strong. Creditworthiness of the company is good. Fundamental of the company appears to be healthy. The subject gets good support from its holdings companies.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

In view of strong holdings and experience directors the company can be considered for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

Claims paying ability  =IAAA

Rating Explanation

Highest claim paying ability. Indicates fundamentally strong position. Prospect of meeting policy holder obligations is the best

Date

March, 2013

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON - COOPERATIVE

 

 

LOCATIONS

 

Registered Office :

ICICI Prulife Tower 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

Tel. No.:

91-22-66621600

Fax No.:

91-22-24376956

E-Mail :

sanaulla.khan@iciciprulife.com

deepak.kinger@iciciprulife.com

maruti.naik@iciciprulife.com

kalpana.sampat@iciciprulife.com

cl.baradhwaj@iciciprulife.com

wecoveryou@iciciprulife.com

ami.badani@iciciprulife.com

Website :

http://www.iciciprulife.com

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Ms. Chanda D. Kochhar

Designation :

Chairperson

Address :

CCI Chambers, Flat No.45, 5th Floor, Dinshaw Vacha Road, Mumbai – 400020, Maharashtra, India

Date of Birth/Age :

11.11.1961

Date of Appointment :

28.05.2002

Din No.:

00043617

 

 

Name :

Mr. Kannan Shrinivasa Narayanan

Designation :

Director

Address :

Flat No.204, Tower B, Kalpataru Horrizon, S K Ahire Marg, Worli, Mumbai – 400018,  Maharashtra, India

Date of Birth/Age :

30.06.1965

Date of Appointment :

01.05.2009

Din No.:

00066009

Voter ID No.:

 

 

 

Name :

Mr. Ramkumar Krishnaswamy

Designation :

Director

Address :

101, Phoenix House, 91, Sayani Road, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

08.08.1961

Date of Appointment :

13.10.2008

Din No.:

00244711

 

 

Name :

Mr. Rajiv Sabharwal

Designation :

Director

Address :

Y, 1301, Chalalilly, Nahar Amrit Shakti, Chandivali, Andheri (East), Mumbai-400072, Maharashtra, India

Date of Birth/Age :

28.09.1965

Date of Appointment :

19.10.2010

Din No.:

00057333

 

 

Name :

Mr. Barry Stowe

Designation :

Director

Address :

11/F, Eva Court, No.36, Macdonnell Road, Hong Kong

Date of Birth/Age :

27.11.1957

Date of Appointment :

06.11.2006

Din No.:

00953024

 

 

Name :

Mr. Adrian O’Connor

Designation :

Director

Address :

12B, 127 Repulse Bay Road, Hong Kong

Date of Birth/Age :

29.12.1958

Date of Appointment :

23.07.2008

Din No.:

02417554

 

 

Name :

Mr. Keki Dadiseth

Designation :

Independent Director

Address :

8 A, Mane K Building L D Ruparel Marg, Malabar, Mumbai – 400006, Maharashtra, India

Date of Birth/Age :

20.12.1945

Date of Appointment :

26.04.2006

Din No.:

00052165

 

 

Name :

Marti G. Subrahmanyam

Designation :

Independent Director

Address :

70, East Tenth Street, #18-S, New York – 10003, USA

Date of Birth/Age :

23.08.1946

Date of Appointment :

26.07.2007

Din No.:

00306761

 

 

Name :

Ms. Rama Bijapurkar

Designation :

Independent Director

Address :

8, C-D Mona Apartments 46 F, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

12.02.1957

Date of Appointment :

17.01.2008

Din No.:

00001835

 

 

Name :

Mr. Vinod Kumar Dhall

Designation :

Independent Director

Address :

Dewan Manohar House, B-88, Sector 51, Noida – 201301, Uttar Pradesh

Date of Birth/Age :

20.02.1944

Date of Appointment :

05.03.2009

Din No.:

02591373

 

 

Name :

Mr. Sridar Iyengar

Designation :

Independent Director

Address :

85, Fair Oaks Lane, Atheron CA74027, USA

Date of Birth/Age :

13.08.1947

Date of Appointment :

20.10.2010

Din No.:

00278512

 

 

Name :

Mr. Sandeep Bakhshi

Designation :

Managing Director & CEO

Address :

B4, Tanna Residency, Opp. Siddhivinayak Temple, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

28.05.1960

Date of Appointment :

01.08.2010

Din No.:

00109206

 

 

Name :

Mr. Puneet Nanda

Designation :

Executive Director

Address :

Flat No.11, Victoria Sarojini Road, Santacruz (West), Mumbai – 400054, Maharashtra, India

Date of Birth/Age :

05.02.1969

Date of Appointment :

01.08.2010

Din No.:

02578795

 

 

Name :

Mr. Madhivanan Balakrishnan

Designation :

Executive Director up to 30.06.2012

Address :

1305, 13th Floor, Ashok Tower, Dr. S S Rao Road, Parel, Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

07.06.1969

Date of Appointment :

01.08.2010

Din No.:

01426902

 

 

KEY EXECUTIVES

 

Name :

Mr. Sanaulla Khan Mohammed

Designation :

Secretary

Address :

201, Rehna Heights, Chapel Lane, Santacruz (West), , Mumbai – 400054, Maharashtra, India

Date of Birth/Age :

13.07.1970

Date of Appointment :

15.12.2008

Pan No.:

ACIPM1846L

 

 

Audit Committee:

·         Keki Dadiseth

·         K. Ramkumar

·         Adrian O’Connor

 

 

Compensation and nominations committee :

·         Rama Bijapurkar, Chairperson

·         Marti G. Subrahmanyam

·         Vinod Kumar Dhall

·         K. Ramkumar

·         Adrian O’Connor

 

 

Customer service and policyholders’ protection committee :

·         Vinod Kumar Dhall, Chairman

·         K. Ramkumar

·         Adrian O’Connor

 

 

Investment committee :

·         Marti G. Subrahmanyam, Chairman

·         N. S. Kannan

·         Adrian O’Connor

·         Sandeep Bakhshi

·         Puneet Nanda

·         Avijit Chatterjee

·         Manish Kumar

 

 

Risk management committee :

·         Marti G. Subrahmanyam, Chairman

·         Rama Bijapurkar

·         N. S. Kannan

·         Adrian O’Connor

 

 

Share transfer committee :

·         Vinod Kumar Dhall, Chairman

·         Keki Dadiseth

·         Sandeep Bakhshi

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2012

 

Names of Shareholders

No. of Shares

 

 

Promoters

 

·         ICICI Bank Limited

1055310907

·         Prudential Corporation Holdings Limited

370784884

Others

2753333

 

 

TOTAL

1428849124

 


As on 31.03.2012

 

Equity Share Break up (Percentage of Total Equity)

 

Category

Percentage

ICICI Bank Limited

73.86

Prudential Corporation Holdings Limited

25.95

Others

0.19

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Life Insurance and Pension Services 

 

 

GENERAL INFORMATION

 

 

No. of Employees :

Not Available

 

 

Bankers :

ICICI Bank Limited

 

 

Facilities :

Secured Loan

31.03.2012

(Rs. In Millions)

31.03.2011

(Rs. In Millions)

SECURITY – WISE CLASSIFICATIONS 

 

 

SECURED

 

 

On mortgage of property

 

 

(aa) In India

0.000

0.000

Loans against policy

95.740

86.945

Total

95.740

86.945

 

Banking Relations :

--

 

 

Auditors :

 

Name1 :

S. R. Batliboi and Company

Chartered Accountant

 

 

Name2 :

BSR and Company

Chartered Accountant

 

 

Holding Company:

ICICI Bank Limited [CIN: L65190GJ1994PLC021012] 

 

 

Substantial Interest:

Prudential Corporation Plc

 

 

Subsidiaries:

ICICI Prudential Pension Funds Management Company Limited [CIN: U66000MH2009PLC191935]

 

 

Fellow Subsidiaries:

·         ICICI Securities Limited

·         ICICI Venture Funds Management Company Limited

·         ICICI Home Finance Company Limited

·         ICICI Lombard General Insurance Company Limited

·         ICICI Trusteeship Services Limited

·         ICICI Securities Primary Dealership Limited

·         ICICI Securities Inc.

·         ICICI Securities Holding Inc.

·         ICICI Investment Management Company Limited

·         ICICI International Limited

·         ICICI Bank UK PLC.

·         ICICI Bank Canada

·         ICICI Bank Eurasia Limited Liability Company

·         ICICI Prudential Asset Management Company Limited

·         ICICI Prudential Trust Limited

·         ICICI Eco-net Internet and Technology Fund

·         ICICI Equity Fund

·         ICICI Emerging Sectors Fund

·         ICICI Strategic Investments Fund

·         TCW / ICICI Investment Partners Limited Liability Company

·         ICICI Kinfra Limited

·         ICICI Venture Value Fund (IVVF)

·         I-Ven Biotech Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorized Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1500000000

Equity Shares

Rs. 10/- each

Rs.15000.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital:

No. of Shares

Type

Value

Amount

 

 

 

 

1428849100

Equity Shares

Rs. 10/- each

Rs.14288.491 millions

 

 

 

 

 

Of the total share capital 1055310907 shares of Rs. 10/- each are held by the holding company. ICICI Bank Limited.

 

After 20.06.2013

 

Authorized Capital: Rs. 15000.000 Millions

 

Issued, Subscribed & Paid-up Capital: Rs. 14290.279 Millions


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

 PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010 

 

 

 

 

SOURCES OF FUNDS

 

 

 

SHAREHOLDERS FUND:

 

 

 

Share Capital

14288.491

14284.611

14281.429

Share Application Money

0.000

0.503

1.067

Employees stock option outstanding

0.000

0.000

0.897

Reserves & Surplus

35023.689

33606.925

33588.365

Fair value change Account – Net

207.604

65.619

(9.604)

 

 

 

 

Sub – Total

49519.784

47957.658

47862.154

 

 

 

 

Borrowings

0.000

0.000

0.000

 

 

 

 

POLICYHOLDERS FUND

 

 

 

Fair value change Account – Net

2203.143

2315.441

2493.446

Revaluation Reserve – Investment Property

704.479

668.879

668.879

Policy Liabilities

83379.998

58875.524

35893.280

Provision for linked liability

574185.927

582329.617

503761.001

Funds for discontinued polices

665.190

0.138

0.000

Sub – Total

661138.737

644189.599

542816.605

Funds for future appropriations

 

 

 

Linked

3322.628

5935.592

10931.566

Non Linked

4269.540

3786.434

1392.600

 

 

 

 

TOTAL

718250.690

701869.283

603002.925

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

Investment

 

 

 

-Shareholders

34770.112

19764.653

12850.338

-Policy Holders

91107.635

72171.914

44565.701

Asset held to cover linked liabilities

578173.746

588265.347

514692.566

Loans

95.740

86.945

116.048

Fixed Assets

1802.306
1982.628
2634.004

Deferred Tax Assets

1053.361
1784.417
2955.164

 

 

 

 

Current Assets

 

 

 

Cash and Bank Balance

2840.640

3303.199

3054.023

Advances and Other assets

6700.182

3347.252

2966.016

Sub – Total  (A)

9540.822

6650.451

6020.039

 

 

 

 

Sundry Creditors

278.550

275.276

267.067

Other Current Liabilities

16185.465

15621.426

15449.951

Provisions

1296.012

49.060

298.835

 

 

 

 

 Sub – Total (B)

17760.027

15945.762

16015.853

Net Current Assets (C) = (A-B)

(8219.205)

(9295.311)

(9995.814)

 

 

 

 

Miscellaneous expenditure

0.000

0.000

0.000

Debit Balance in Profit and Loss Account

19466.995

27108.690

35184.918

 

 

 

 

TOTAL

718250.690

701869.283

603002.925

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

Amount transfer from Policyholders account (Technical account)

11951.497

7319.160

2571.204

 

 

 

 

Income from investments

 

 

 

(a) Interest, Dividend and Rent - Gross

2065.785

928.768

223.290

(b) Profit on sale/redemption of investments

558.014

135.283

94.047

(c) Loss on sale/redemption of investments

(426.516)

(5.422)

(4.937)

Other Income

5.617

0.000

0.000

 

 

 

 

Total

14154.397

8377.789

2883.604

 

 

 

 

Expenses other than those directly related to the insurance business

17.171

52.752

78.309

Bad Debts Written Off

0.000

0.000

0.000

 

 

 

 

Provisions (other than taxation)

 

 

 

(a) For diminution in value of investments (net)

0.000

0.000

0.000

(b) Provision for doubtful debts

0.000

0.000

0.000

 

 

 

 

 Total

17.171

52.752

78.309

 

 

 

 

(Less) Profit Before Tax

14137.226

8325.037

2805.295

 

 

 

 

Provision for Taxation [Differed Tax]

(295.489)

248.809

225.610

 

 

 

 

Profit / (Loss) after tax

13841.737

8076.228

2579.685

 

 

 

 

Appropriation

 

 

 

(a) Balance of the beginning for the year

27108.690

35184.918

37764.603

(b) Interim dividends paid during the year

3142.777

0.000

0.000

(c) Proposed final dividend

1000.885

0.000

0.000

(d) Dividend distribution Tax

672.206

0.000

0.000

(c) Transfer to reserve / other income

1384.174

0.000

0.000

Profit / (Loss) carried to Balance Sheet

(19466.995)

(27108.690)

(35184.918)

 

 

 

 

Earning Per shares (Rs.)

9.69

5.65

1.81

 

 

LOCAL AGENCY FURTHER INFORMATION

 

NOTE:

 

Current maturities of long term debt is not available

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----

22]

Litigations that the firm / promoter involved in

----

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----

26]

Buyer visit details

----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

CHARGES:

 

ENTITY

 PERSON

COMPETENT AUTHORITY

 REGULATORY CHARGES

 REGULATORY ACTION(S) / DATE OF ORDER

FURTHER DEVELOPMENTS

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

 

IRDA 

Permitted various unlicensed individuals to solicit and procure business

Entered in referral agreements with non-banking entities including individuals

Apart from referral fee, incurred other expenses on referral partners

Paid non-compete fee apart from commission to corporate agents

Made other payouts apart from commissions in the name of branch level marketing, promotional activities, customer awareness programmes, market feedback and other related activities to insurance broker

Remunerated master policyholders in the name of “market support fee” or “administrative fee”

Imposed penalty Rs.11.800 millions

Advised Insurance Companies to strictly adhere to Irda guidelines Rs.11.800 millions

24-MAY-2012

 

 

BACKGROUND:

The Company a joint venture between ICICI Bank Limited and Prudential Corporation Pic was incorporated on July 20, 2000 as a company under the Companies Act, 1956 ('the Act'). The Company is licensed by the Insurance Regulatory and Development Authority ('IRDA') for carrying life insurance business in India. The Company carries on business in the areas of life, pensions and health insurance. This business spans across individual and group products and covers participating, non-participating and unit linked lines of businesses. Riders covering additional benefits are offered under these products. These products are distributed through individual agents, corporate agents, banks, brokers and the Company's

Proprietary sales force.

 

 

PERFORMANCE:

Fiscal 2012 was the first full year of operations for the life insurance industry since the regulatory changes to product structures that came into effect from September 1, 2010. During the year, the retail new business of the industry (in weighted terms) recorded a negative growth of 4.8%. Within this, the public sector grew 11.2% and the private sector companies as a whole had a negative growth of 23.9%.

In line with the private sector performance, the Company registered a negative growth of 23.5% during FY2012. The Company had a private sector market share of 16.1% for the year as against 16.0% for fiscal

2011.

 

SUBSIDIARY:

The Company has a wholly owned subsidiary, ICICI Prudential Pension Funds Management Company Limited (PFM). PFM was appointed by the Pension Fund Regulatory and Development Authority (PFRDA) as a pension fund manager and acts as a fund manager under the National Pension System (NPS) for Indian citizens other than government employees. It is the only pension fund manager under NPS which is promoted by a life insurance company with experience in managing long term investments of life and pension funds.

 

During the year ended March 31, 2012, the subscribers' funds managed by PFM have reached Rs. 291.900 million (Previous year: Rs. 107.700 millions) and for the year ended March 31, 2012 the PFM registered a loss of Rs. 0.445 million (previous year: loss of Rs. 0.002 million).

 

INDUSTRY AND BUSINESS REPORT

·         ECONOMIC OVERVIEW AND OUTLOOK

India has strong economic fundamentals in the form of a favourable demographic profile and large investment potential. We believe this will continue to create opportunities across various customer and product segments. Good economic growth rates backed by favourable demographics, high household savings rate and increasing pool of insurance funds provide a great opportunity for the Indian Insurance industry. Fiscal 2012 however experienced several economic challenges including high inflation and interest rates and volatile capital flows and currency markets, due to a combination of global and domestic factors. We believe that while there may be short-term challenges, the strong underlying fundamentals of the Indian economy would sustain healthy rates of growth over the medium to long term.

 

·         INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian life insurance sector has witnessed strong growth post liberalisation mainly driven by higher disposable incomes, changing demographics, government/regulatory efforts to enhance insurance penetration, launch of new products, more transparency and entry of foreign players. The sector has not only outpaced India's economic growth figures, but also stood strong as an important financial segment through turbulent times. Over the years, there has been a paradigm shift in the way the consumers looks at insurance products in India from a mere tax saving instrument to a long term savings and protection tool.

The Indian insurance industry grew at a CAGR of over 20% in the first decade post liberalisation on Retail New Business Weighted Premium1 basis. This era witnessed large scale expansion by insurance companies to increase their footprint across the country in order to capitalise on the growth opportunities presented by the economy. At March 31, 2012 the number of Life Insurers increased to 24 recording a new business premium of ? 1.14 trillion and a total premium (including renewals) of approximately ? 2.86 trillion for fiscal 2012. The insurance penetration (as a percentage of the growth for the industry has however been muted since the global slowdown witnessed in the last few years. The industry witnessed decline of 4.8% in fiscal 2012 (on Retail New Business Weighted Premium1 basis). However, sequentially the trend is encouraging with the industry growth of 16% in H2 2012 as compared to decline of 28% in H1 2012.

Fiscal 2012 saw a series of regulatory developments mainly around grievance redressal, non face to face solicitation of business, out-sourcing of activities and issuance of capital by insurance companies. The Finance Bill 2012 also brought in some changes for the industry by increasing the minimum sum assured required for claiming tax exemption on premium paid on policies and making Minimum Alternate Tax applicable to insurance companies.

 

·         COMPANY'S STRATEGY AND PERFORMANCE ON KEY ELEMENTS

We value all our customers. Naturally then, our initiatives are all customer-centric. Commitment to customers is accorded high priority across the board be it product development, distribution, sales processes, servicing or even claims settlement. Our customer-focused approach and the attention to innovation has enabled us to achieve our targets market leadership, quality business and efficiencies in operations and profits. To this end we have stringently focused on:

 

PRODUCTS: We seek to provide a bouquet of products to meet every need of the customer throughout his life cycle. This ensures that the various products offered by the company strategically fit into the financial plan of customers and help them achieve their various long term financial goals. We believe that providing need based customer centric solutions will ensure quality of business which is essential for quality growth.

 

CUSTOMER AWARENESS AND RETENTION: We believe that the quality of business can be maintained only if the customer fully understands the features of an insurance product. Further, customer retention is a proof of trust the customers manifest towards our brand and is hence essential for our profitable growth.

 

 

AUDITED FINAMNCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2013

(Rs. In Millions)                                                                                                       

Particulars

Total

Non – Linked

Linked

 

 

Individual

Group

Individual

Group

 

 

Life

Pension

 

Life

Pension

 

 

 

 

 

 

 

 

 

(a) Premium

135382.400

32232.400

2921.100

3607.300

57291.000

27327.300

12003.300

(b) Reinsurance ceded

(1209.900)

(695.500)

-

-

(513.400)

(0.100)

(0.900)

(c) Reinsurance accepted

-

-

-

-

-

-

-

Sub-total

134172.500

31536.900

2921.100

3607.300

56777.600

27327.200

12002.400

Income from investments

 

 

 

 

 

 

 

(a) Interest, dividend and rent - Gross

27992.300

3934.800

1536.200

1240.400

10056.900

7735.500

3488.500

(b) Profit on sale / redemption of investments

35302.900

575.700

239.800

116.700

19565.400

13075.300

1730.000

(c) (Loss) on sale / redemption of investments

(16646.400)

(147.100)

(17.200)

(34.900)

(8815.500)

(7200.800)

(430.900)

(d) Transfer / gain on revaluation / change in fair value

11980.000

-

-

-

4639.200

7163.500

177.300

(e) Accretion of discount / (amortisation of premium) (net)

3175.400

59.000

45.500

213.500

1104.300

955.400

797.700

(f) Appropriation/expropriation adjustment account

-

-

-

-

-

-

-

Sub-total

61804.200

4422.400

1804.300

1535.700

26550.300

21728.900

5762.600

Other income:

 

 

 

 

 

 

 

Contribution from the Shareholders' account

5412.400

5294.400

118.000

-

-

-

-

Fees and charges

37.000

34.600

0.600

-

1.800

-

-

Miscellaneous income

203.700

87.800

1.200

0.300

103.200

8.400

2.800

Sub-total

5653.100

5416.800

119.800

0.300

105.000

8.400

2.800

Commission

7654.200

5213.200

7.400

-

2088.600

345.000

-

Operating expenses related to insurance business

20386.200

8757.700

116.900

24.900

8407.500

2817.600

261.600

Provision for doubtful debts

53.600

33.300

0.300

-

12.400

7.600

(55.800)

Bad debts written off

16.700

5.300

-

-

10.000

1.400

109.400

Benefits paid (net)

132804.500

2256.400

1204.500

7046.300

60387.800

50967.700

10941.800

Interim bonus paid

48.700

47.400

1.300

-

-

-

-

Change in valuation of liability in respect of life policies

 

 

 

 

 

 

 

(a) Gross amount

27356.000

26877.700

3172.800

(2223.300)

7428.500

(14218.600)

6318.900

(b) Amount ceded in reinsurance

(1425.300)

(1425.300)

-

-

-

-

-

(c) Amount accepted in reinsurance

-

-

-

-

-

-

-

Total (C)

158783.900

27756.200

4378.600

4823.000

67816.300

36749.100

17260.700

Surplus / (Deficit) (D) = (A) - (B) - (C)

14735.200

(389.600)

342.000

295.400

5098.100

9143.800

245.500

Provision for taxation

(a) Current tax credit / (charge)

(b) Tax credit/(charge)

(238.300)

652.000

18.500

(58.700)

(816.900)

 

 

-

(33.200)

 

Appropriation

 

 

 

 

 

 

 

 Balance of previous year

7592.200

814.100

521.300

(179.500)

3039.100

3397.200

-

Transfer to Shareholders' account

17006.300

95.700

18.600

140.200

5987.000

10552.600

212.300

Balance being funds for future appropriations

 

 

 

 

 

 

 

Reserve for lapsed unit linked policies unlikely to be revived

1322.400

-

-

-

483.500

838.900

-

Funds for future appropriation

3760.100

980.800

863.200

(83.000)

849.600

1149.500

-

 

 

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2013

   (Rs. In Millions)

Particulars

      31.03.2013

 

 

Amount transferred from Policyholders' (Technical) account

11593.900

Income from investments

 

(a) Interest, dividend and rent - Gross

3017.100

(b) Profit on sale / redemption of investments

1065.200

(c) (Loss) on sale / redemption of investments

(162.600)

(d) Accretion of discount/ (amortisation of premium) (net)

253.300

Other income

4.900

Total (A)

15771.800

Expenses other than those directly related to the insurance business

76.700

Bad debts written-off

-

Provisions (other than taxation)

 

(a) For diminution in value of investments (net)

-

(b) Provision for doubtful debts

-

Profit before tax (A)-(B)

15695.100

Provision for taxation

 

(a) Current tax credit/(charge)

--

(b) Deferred tax credit/(charge)

(736.800)

Profit after tax

14958.300

Appropriations

 

(a) Balance at the beginning of the year

(19467.600)

(b) Interim dividends paid during the year

3429.300

(c) Proposed final dividend

1414.000

(d) Dividend distribution tax

796.600

(e) Transfer to reserves

1495.900

Loss carried to Balance Sheet

11645.100

Earnings per equity share

 

Basic earnings per equity share (Rs.)

10.47

Diluted earnings per equity share (Rs.)

10.44

Nominal value per equity share (Rs.) 

10.00

 

 

BALANCE SHEET

   (Rs. In Millions)

Particulars

     31.03.2013

 

 

 Sources of funds

 

Shareholders' funds:

 

Share capital

14289.400

Reserve and surplus

36525.200

Credit / (debit) fair value change account

477.600

Deferred tax liability

0.200

Sub-Total

51292.400

Borrowings

-

Policyholders' funds:

 

Credit / (debit) fair value change account

2478.000

Revaluation reserve - Investment property

704.500

Policy liabilities

110276.000

Provision for linked liabilities

569584.000

Funds for discontinued polices

4301.900

Sub-Total

687344.400

Funds for future appropriations

 

Linked

1322.400

Non-Linked

3760.100

Sub-total

5082.500

Total

743719.300

Application of funds

 

Investments

 

- Shareholders’

49190.300

- Policyholders’

112869.900

Asset held to cover linked liabilities

575208.300

Loans

87.500

Fixed assets

1724.000

Deferred tax asset

78.200

Current assets

 

- Cash and bank balances

3247.700

- Advances and other assets

9837.900

Sub-total (A)

13085.600

Current liabilities

18416.300

Provisions

1753.100

Sub-total (B)

20169.400

Net current assets ©=(A-B)

(7083.800)

Miscellaneous expenditure  (to the extent not written-off or adjusted)

--

Debit balance in Profit & Loss Account (Shareholders account)

    11645.100

Total

743719.300

 

NOTE:

The audited financial statements have been taken on record by the Board of Directors at its meeting held at Mumbai on April 18, 2013. The statutory auditors have expressed an unqualified audit opinion. The Revenue account. Profit and Loss account and Balance Sheet presented above are extracted from the audited financial statements as stated. These financial statements comprise of the consolidated financial statements of ICICI Prudential Life Insurance Company Limited, the Parent Company, with the financial statements of its subsidiary ICICI Prudential Pension Funds Management Company Limited

 

 

ANALYTICAL RATIOS

(Rs. In Millions)

Particulars

31.03.2013

 

 

 New business premium income growth

 

- Non-Linked Life

27.7%

- Non-Linked Pension

7.9%

- Non-Linked Group

(74.8%)

- Linked Life

(4.9%)

- Linked Pension

62.6%

- Linked Group

117.0%

Net retention ratio

99.1%

Ratio of expenses of management

20.7%

Commission ratio

5.7%

Ratio of policyholders liabilities to shareholders funds

1746.5%

Growth rate of shareholders fund

31.9%

Ratio of surplus to policyholders liability

1.3%

Change in Networth

95.949%

Profit after tax / total income

7.5%

Total real estate + loans)/cash & invested assets

0.3%

Total investment / (capital + surplus)

1859.6%

Total affiliated investment /(capital + surplus)

7.1%

investment yield (gross and net)

 

A. Without unrealised gains

 

- Shareholders' fund

10.0%

- Policyholders' fund

 

Non-Linked Par

9.5%

Non-Linked Non Par

9.0%

Linked Non Par

5.7%

B. With unrealised gains

 

- Shareholders' fund

11.5%

- Policyholders' fund

 

Non-Linked Par

12.2%

Non-Linked Non Par

11.8%

Linked Non Par

7.6%

Conservation ratio

 

- Non-Linked Life

80.4%

- Non-Linked Pension

92.4%

- Non-Linked Group

34.4%

- Linked Life

68.0%

- Linked Pension

64.2%

- Linked Group

54.4%

Persistency ratio*

 

- 13th month

71.4%

- 25th month

90.0%

- 37th month

35.6%

- 49th month

56.6%

- 61st month

60.9%

NPA ratio

NIL

 

*Ratio computed on reducing balance basis. The denominator includes only policies paying premium at the beginning of the year. These numbers are for 12 months ending March 31 of the respective financial year

 

 

WEBSITE DETAILS:

 

PRESS RELEASE

 

ICICI PRUDENTIAL LIFE INSURANCE BARRED FOR 3 YRS BY HARYANA GOVT

April 17, 2013

 

Chandigarh : The Haryana government has barred ICICI Prudential Life Insurance for three years from doing any further business with it or any of its departments for "intentionally delaying" the process of distribution of annuity to land owners and failure to carry out commitments.

 

"ICICI Prudential Life Insurance Company needed to be blacklisted," the state's Finance Department said in a statement.

 

When contacted, the company declined to comment on the matter.

 

"The notice can, however, opt to pay compounding fee in lieu of entire or a part of the black listing period within one month from the date of this order.

 

"...this is by paying penal interest at a rate of one per cent for every six months or part thereof of the blacklisting period proposed to be compounded, by making a request to the government in this regard," the statement said.

 

Such enhanced rate of interest would be payable on the amount advanced to notice for the period from date of receipt of advance till the date of repayment of advance and interest at SBI base rate to the Department, it said.

Necessary orders for allowing compounding of the black listing period will be passed after receipt of the requisite compounding fee, it added.

 

An Expression of Interest was issued in February, 2011 inviting bids from insurance companies and banks for the purpose of providing services for disbursement of annuity to the land owners under the R and R Policy of the state government.

 

The bid-cum-tender documents were submitted by ICICI Prudential on March 31, 2011.

Thereafter, several rounds of discussions were held between the notice and the state government with respect to various stipulations and condition stated in the draft Services Level Agreement, it said.

 

This included the obligation of the notice as the Service Provider with respect to collection and validation of data of the beneficiaries under the scheme of annuity, it added.

 

 

 

 

ICICI PRUDENTIAL GETS OVER RS 1300.000 MILLIONS TAX NOTICE

 

The Finance Ministry has asked private sector insurer ICICI Prudential to cough up over Rs 1300.000 millions for alleged evasion through non-payment of service tax.


The Directorate General of Central Excise Intelligence (DGCEI) has issued a show-cause-cum-demand-notice recently to the firm alleging irregularities including fudging of commission paid to field agents or channel partners in lieu of policies being sold by them among others, official sources said.


Officials of the DGCEI, an investigative arm of Revenue Department under the Ministry, verified the accounts book of the company for the last five years--2007-08 to 2011-12--and claimed to have found irregularities vis-a-vis adherence to service tax laws.


The officials found non-payment of appropriate service tax on the commission paid to their channel partners for the generation of life insurance business and collection of service tax from their corporate agents without any authority in law and not depositing the same to the government exchequer, they said.


"The DGCEI has raised a demand for payment of about Rs 1360.000 millions on account of alleged service tax evasion to ICICI prudential," a source said.


An ICICI Prudential spokesperson said the company will respond to the notice issued to it.


"The department has followed procedure by issuing the show cause notice. We will respond to the notice within the stipulated time period," an official company spokesperson told.


The officials alleged that the company was paying huge


sums of money to their channel partners under different heads in lieu of commission, thereby not paying service tax on the correct amount paid.



In some instances, up to 80 per cent of the premium paid by the unsuspecting customers was given to the channel partners as commission for the sale of life insurance products in gross violation of Insurance Regulatory and Development Authority (IRDA) norms.

The DGCEI, which began probe last year to unearth alleged service tax evasion by various life insurance firms, is likely to issue show-cause-cum-demand notices to other firms also, the sources said.


Investigations have found alleged service tax evasion of at least Rs 3000.000 millions by private sector life insurance companies. The insurance companies under probe are found to be allegedly maintaining wrong data of commission paid and not paying service tax being deducted from their corporate agents, they said.

All life insurance companies are required to pay service tax at the rate of 12.36 per cent on the total commission paid to the corporate agents and the individual agents under the reverse charge mechanism, where as brokers and referrals are individually liable to pay service tax at the rate of 12.36 per cent on the commission amount received from the insurance companies.


At present, there are 24 general insurance companies including the Export Credit Guarantee Corporation (ECGC) and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

 

 

ICICI PRU ICARE AWARDED PRODUCT OF THE YEAR 2012

 

Mumbai; April 19, 2012

 

Product of the Year is the world's largest consumer-voted award for product innovation.

ICICI Pru iCare, an innovative online term insurance product from ICICI Prudential Life Insurance was awarded the Product of the Year 2012 in the Life Insurance category.


'Product of the Year' is the global consumer recognition standard that celebrates and rewards the best innovations in consumer products and services done through an independent consumer survey across the country. ICICI Pru iCare was shortlisted by the jury post which the product was put through an independent and 100% face to face consumer survey. The survey was conducted by AC Nielson in 36 (Thirty Six) markets across India with a participant size of more than 30,000 people.

 

Speaking on the occasion, Mr. Manish Dubey, Sr. Vice President and Head - Marketing, ICICI Prudential Life Insurance said, ''The award is a recognition of ICICI Prudential Life’s consistent Endeavour to enhance the customer experience, both offline as well as online. We strongly believe that technology will play a major role in adding new dimensions to the consumer experience with life insurance by making the interaction convenient, affordable and transparent.''

 

The consumers have voted for ICICI Pru iCare as the Product of the Year 2012 in the Life Insurance category for its easy accessibility, convenience and affordability.

 

ICICI Pru iCare is a comprehensive term insurance plan which can be bought online in 10-15 minutes without any medical tests.

·         Select the cover amount

·         key in the personal details

·         Make the payment

The entire process of buying ICICI Pru iCare can be done online at a person's chosen time and convenience.

ABOUT ICICI PRUDENTIAL LIFE INSURANCE:

 

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc. It was one of the first players to commence operations when the insurance industry was opened to the private sector in 2000. For Q3 FY 2012, the company garnered Rs. 32040.000 millions of total premiums and has underwritten over 13 million policies since inception. The company has a network of approximately 1,000 offices and over 1, 27,052 advisors, as at Dec 31, 2011. In addition to this, the company has over 5000 distribution touch-points and over 10,000 servicing touch-points across the country.

 

 

CONTINGENT LIABILITIES: (As on 31.03.2011)

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

Claims, other than those under policies, not acknowledged as

debts

140.718

153.485

Guarantees given by or on behalf of the Company

5.357

4.888

Others – policy related claims under litigation

285.403

239.601

Total

431.478

397.974

 

 

FIXED ASSETS:

 

·         Software

·         Freehold Land

·         Improvements to Leasehold Property

·         Office Building on freehold land

·         Information technology equipment

·         Motor vehicles

·         Communication networks

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.36

UK Pound

1

Rs.86.69

Euro

1

Rs.77.99

 

 

INFORMATION DETAILS

 

Information Gathered by :

SVA

 

 

Report Prepared by :

ANK

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

72

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

 

NB

New Business

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.