Insurance News

home > Media > Insurance News
ICICI Lombard General Insurance raises Rs 1,625 crore from anchor investors
15-Sep-2017 09:33

ICICI Lombard General Insurance Company raised about Rs 1,625 crore from 64 anchor investors on Thursday, a day before its initial public offering (IPO) opens for subscription.

The investors who acquired shares through anchor allotment include The Nomura Trust, Blackrock India Equities, SBI Life Insurance, Citigroup Global Markets, SBI Life, BNP Paribas Insurance among others.

The country's largest private sector non-life insurer is planning to raise around Rs 5,700 crore from its IPO, which is scheduled to close on September 19.

The company has set a price band of Rs 651-661 per share for its IPO. When calculated at the upper band of the issue price, the company will be valued at Rs 30,000 crore.

The offer constitutes 19% of the post offer equity share capital, which will include 7% by ICICI Bank and 12% by Fairfax Financial Holding Limited. ICICI Bank will get Rs 2,099.40 crore selling 3.17 crore shares, while Fairfax will fetch Rs 3,601.50 crore for its 5.4 crore shares. The company has reserved 43.12 lakh shares for ICICI Bank shareholders. Bids can be made for a minimum of 22 equity shares and multiples of 22 thereof.

This issue is a pure offer for sale (OFS) and the company will not receive any proceeds.

ICICI Lombard has a market share of 10.05% in the non-life insurance industry as on July 2017, showed data from the Insurance Regulatory and Development Authority of India (Irdai). In FY 17 the company issued approximately 1.77 crore policies and their gross direct premium was Rs 10,725 crore. For the three months ended June 2017, the company issued 52 lakh policies and their gross direct premium income was Rs 3321 crore.
Life insurance companies' new business premium up 23% to Rs 17,513 crore in August
15-Sep-2017 09:31

Life insurers registered a growth of 22.6 per cent in new premium at Rs 17,513.44 crore for August this fiscal.

This compares with Rs 14,282.45 crore as new business premium during August of 2016-17.

India's largest and the only public life insurer Life Insurance Corporation (LIC) recorded a jump of 25 per cent in its new premium collection at Rs 13,382.30 crore during the month as against Rs 10,713.55 crore in the same period year ago, data from Irdai showed.

The private life insurance companies' collective new business premium in August rose 15.8 per cent to Rs 4,131.15 crore, from Rs 3,568.90 crore a year earlier.

ICICI Prudential Life new premium grew a mere 4.8 per cent to Rs 768.19 crore while that of HDFC Standard Life jumped 37.5 per cent to Rs 750.97 crore. Max Life's was up 22.5 per cent at Rs 295.91 crore and Bajaj Allianz Life's Rs 217.31 crore, gaining 13.6 per cent.

Among major private players, SBI Life logged a fall in its new premium collection at Rs 820.33 crore, from Rs 822.28 crore in August 2016, according to the numbers from the Insurance Regulatory and Development Authority of India (Irdai).

Among others, Kotak Mahindra Old Mutual showed a decline of 6.5 per cent in premium income at Rs 199.25 crore in August. In the case of Sahara Life, it was Rs 14 lakh, down 95 per cent from a year ago, while for Bharti Axa Life, it fell to Rs 46.64 crore, from Rs 52.71 crore a year before.

On the cumulative basis, new premium income of all the 24 life insurers went up 19.7 per cent to Rs 71,173.29 crore during April-August of this fiscal.

For LIC, the premium collection in April-August jumped 20.2 per cent to Rs 52,921.31 crore and that of the private sector increased 18.3 per cent to Rs 18,251.98 crore.
Max Life Insurance scouting for business opportunities with insurance companies: MD Rajesh Sud
14-Sep-2017 16:15

Max Life Insurance is scouting for business opportunities with insurance companies backed by a banking division after its plan to merge with HDFC Life hit a dead-end due to regulatory hurdles.

"We keep on exploring, it is an ongoing process. We will be looking for business opportunities both with private and public sector banks (who are into life insurance business)," Rajesh Sud, Executive Vice Chairman & MD, Max Life Insurance said on the sidelines of an event today.

On the timing of such announcement, he said the company is exploring the options and it is difficult to put any deadline to that.

Earlier in July, the high-profile merger deal of Max Life Insurance with HDFC Standard Life were put to back burner as sector regulator Irdai did not allow the complex structure of the plan, involving merging a non-insurance business with that of an insurance.

As per the plan, Max India was to amalgamate Max Life Insurance with Max Financial Services. Subsequently, the insurance business of the merged entity was to be demerged so that it could be transferred to HDFC Standard Life Insurance Company. However, the nature of the deal was in contravention to Insurance Regulatory and Development Authority of India (Irdai) norms, forcing the two companies to part ways.

Earlier today speaking at the SHRM India Annual Conference and Exposition 2017, the biggest event for HR fraternity of the sub-continent, Sud said it was imperative in today's environment to keep innovating and changing with time.

"To win in today s rapidly changing environment where nothing is constant, character, empathy and action are the key for organisations to keep abreast of the changes and build a winning culture," Sud said.
SBI Life Insurance to launch India's first billion dollar IPO since CIL in 2010
13-Sep-2017 09:45

SBI Life Insurance Co Ltd will launch an initial public offering next week to raise as much as $1.3 billion, according to the sources which will be the country's first billion-dollar IPO in nearly seven years.

SBI Life, a subsidiary of top Indian lender State Bank of India, will open the IPO sale to the public on September 20 and close it on September 22, according to a filing. Two sources said the shares will be sold in a price range of 685 rupees to 700 rupees apiece.

The IPO will raise as much as 84 billion rupees ($1.3 billion) for SBI Life's two main shareholders - State Bank of India and BNP Paribas Cardif - which are paring their stakes.

State Bank of India is selling up to an 8 percent stake, or 80 million shares, in SBI Life, while BNP Paribas Cardif is selling up to a 4 percent stake, or 40 million shares.

SBI Life's IPO is the biggest since state-run Coal India's 155 billion rupee ($2.4 billion) IPO in 2010 and market participants expect 2017 to be a record-setting year for India, with fund-raising from IPOs exceeding 2010's $8.5 billion.
SBI Life Insurance IPO to open on September 20
13-Sep-2017 09:35

SBI Life Insurance, a subsidiary of the countrys largest lender SBI, will hit the capital market on September 20 to raise up to Rs 8,400 crore.

The initial share sale offer will open on September 20, 2017 and close on September 22, 2017, SBI said in a regulatory filing to the stock exchanges.

This would be the second listing of a life insurer after ICICI Prudential Life Insurance, which went public last year.

According to sources, SBI Life Insurance has fixed a price range of Rs 685-700 for the IPO. At the upper end of the price band, the company is expected to raise Rs 8,400 crore.

SBI Life insurance public issue involves its promoters offloading up to 12 crore shares of face value of Rs 10 each through the offer of sale route, as per the draft offer documents.

State Bank of India (SBI) will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore.

Explaining the rationale behind the IPO, SBI Life had said the company wants to achieve the benefits of listing equity shares on the stock exchanges.

"The listing of equity shares will enhance the SBI Life brand name and provide liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India," the company had said.

SBI Life Insurance is a joint venture between India's largest lender SBI and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France.

SBI holds 70.10 per cent in SBI Life and BNPPC 26 per cent. Minority shareholders Value Life Pte, an affiliate of KKR Asian Fund and MacRitchie Investments Pte, a wholly-owned subsidiary of Temasek Holdings, hold 1.95 per cent each.
Open e-Insurance Accounts within 15 days of selling policies: says IRDAI
08-Sep-2017 09:52

All insurers opening electronic-insurance accounts (e-IAs) for policies sold on the self-networking platform (ISNP) have to opening an e-IA within 15 days of a sale, the regulator said.

The Insurance Regulatory and Development Authority of India (Irdai) issued the clarification after stakeholders raised issues seeking clarity on revised guidelines on insurance repositories and electronic issuance of policies.

The regulator has asked all insurers, insurance intermediaries and insurance repositories to validate one-time password (OTP) permit for opening an e-IA as an alternative to e-signatures.

"As per current practice, an e-signature of the holder (e-IA) on the application form for opening an e-IA is considered as a valid authentication," said Irdai.

Moreover, Irdai has asked all authorities concerned to comply with the know-your-customer/anti-money laundering (KYC/AML) guidelines by using e-KYC facility offered by the Unique Identification Authority of India (UIDAI). Valid KYC documents can also be used in case of insurance e-commerce.

To make things simpler, the authority has allowed opening of e-IA on the basis of either an email id or a mobile number, with only one OTP being sent to the email id or mobile number.

Earlier, the guidelines suggested that insurance e-commerce required creation of e-IA and gave an option to customers to provide an email id or a mobile number. In the revised guidelines, the authority made both mandatory to open e-IA.

The insurance repository has to send OTP1 on the registered email id and OTP2 on the registered mobile number of the e-IA holder.
SBI Life Insurance gets SEBI approval for Rs 8,400 crore IPO
07-Sep-2017 13:45

SBI Life Insurance has received approval from the Securities and Exchange Board of India for an IPO of up to Rs 8,400 crore ($1.3 billion), with launch targeted for the September 20-22 period.

The launch period is subject to approval from the Registrar of Companies, according to a person with knowledge of the matter.

The IPO will involve 120 million secondary shares, or 12 per cent of the insurer's equity capital. State Bank of India, which currently owns 70.1 per cent of the insurer, will sell 80 million shares and BNP Paribas Cardif, holder of a 26 per cent stake, will sell 40 million.

The other major shareholders of SBI Life are KKR Asian Fund and Temasek Holdings, which own 1.95 per cent through their subsidiaries.

Axis, BNP, Citigroup, Deutsche Bank, ICICI Securities, JM Financial, Kotak and SBI Capital are leads on the IPO.
Life Insurance Corporation reduces stake in Raymond by 2.01%
06-Sep-2017 18:59

State-owned Life Insurance Corporation (LIC) has reduced its stake in textile and apparel major Raymond by 2.01 per cent, selling 12.37 lakh shares in the open market.

LIC, which had 5.53 per cent stake earlier, brought down its shareholding in the company to 3.51 per cent by selling shares between October 11, 2016 to September 4, 2017, Raymond said in a filing to the BSE.

Shares of Raymond ended at Rs 856.15 apiece, up 0.35 per cent on the BSE.
ICICI Lombard General Insurance gets SEBI nod for Rs 6,000 crore IPO
05-Sep-2017 17:31

ICICI Lombard General Insurance Company has got capital markets regulator Sebi's go-ahead for its estimated Rs. 6,000 crore initial public offer, which could be the first by a general insurer in the country.

Two state-run general insurers -- General Insurance Corp of India and New India Assurance Company -- as also two life insurance firms (SBI Life and HDFC Standard Life) have also lined up IPO plans and are awaiting Sebi's go-ahead for their respective draft papers.

Among these, Sebi is awaiting "clarification" from insurance regulator IRDAI with regard to IPOs by HDFC Standard Life, New India Assurance and General Insurance, as per the latest update available with Sebi on these IPOs.

In case of SBI Life, the market regulator received the required details from IRDAI on August 28 and the case is currently "under process" at Sebi's end.

Sebi issued its "observations" -- a technical jargon for the regulator's go-ahead for public issues -- on the public offer by ICICI Lombard General Insurance on September 1. The company had filed its draft prospectus with Sebi on July 14 for the public issue which would comprise Offer For Sale of shares by existing shareholders, accounting for 19 per cent stake.

ICICI Lombard is a joint venture between ICICI Bank and Canada-based Fairfax Financial Holdings Ltd.

The IPO involves dilution of up to 86,247,187 equity shares of face value of Rs. 10 each of ICICI Lombard General Insurance.

According to market sources, the IPO could be worth about Rs. 6,000 crore.
Reliance General Insurance gets IRDAI nod for IPO
05-Sep-2017 16:06

Reliance General Insurance Company, a 100 per cent subsidiary of Reliance Capital Limited, today received in-principle approval from Insurance Regulatory and Development Authority of India for the process of its proposed IPO, becoming second private sector general insurance company to list.

The company is looking to list in FY18. ICICI Lombard is likely to list this financial year as well.

It had reported 41 per cent growth in the last financial year with gross direct premium stood at Rs 3,935 crore in the year ended March 31, 2017.

RGI provides a wide range of general insurance products like fire, motor, health, home, crop, travel etc.

The company reported profit before tax of Rs 130 crore. It's investment book stood at Rs. 6,724 crore, up 25 per cent for the year ending 31st March, 2017.