ICICI, Prudential ink MoU for insurance business

The Industrial Credit and Investment Corporation of India has signed a memorandum of understanding with Prudential Corporation of the United Kingdom to jointly explore opportunities in the life insurance business and to soon set up a joint venture when the industry is opened to the private sector.

The institutions have agreed to examine the areas of healthcare, pensions and mutual funds with the goal of eventually providing a full range of life insurance and other financial products.

ICICI Managing Director K V Kamath has said this would be another step towards ICICI becoming a universal bank and specifically meeting the investment and savings needs of the retail investor.

The Prudential is a highly respected institution committed to serving the retail investor. Kamath said "The joint venture would complement our existing business in comprehensively meeting the needs of the retail investor and would be a source for long-term finance required to fund infrastructure development in the country.

"We are comfortable with the Prudential's global record of success mainly in Asian developing markets of Thailand and Indonesia."

Prudential Corporation Asia Managing Director Mark Tucker said his company has been working very closely with ICICI to develop a common business framework in readiness for the liberalisation of the insurance market.

"The memorandum marks a significant step in our relationship towards exploring opportunities in the personal insurance and investment sectors which would meet the savings aspirations and financial security needs of the Indian consumer," he said.

Tucker said "For the Indian market, we are committed to providing a wider range of financial and investment products which would provide the Indian consumer with greater choice. The ultimate aim is to offer relevant, value-for-money products, professional advice and exceptional levels of customer service."

"Prudential India was our first and most successful overseas branch between 1923 and 1956 and we look forward to be back serving the Indian public in the not too distant future," he added.

Founded in 1848 in London, Prudential is the largest life insurance company in the United Kingdom and is one of Britain's biggest institutional investors with over $160 billion funds under management worldwide.

It has operations in Singapore, Hong Kong, Malaysia, Indonesia, Thailand and the Philippines as well as representative offices in China and Vietnam.

In the Asia Pacific region, Prudential has a $13 billion investment portfolio managed by its investment arm, Prudential Portfolio Managers.

UNI