ICICI Bank 2010 Annual Report Download - page 45

ICICI Life’s unaudited New Business Profit in fiscal 2010 was Rs. 10.15 billion. Life insurance companies make
accounting losses in initial years due to business set-up and customer acquisition costs in the initial years and
reserving for actuarial liability. Further, in India, amortisation of acquisition costs is not permitted. These factors
resulted in statutory losses for ICICI Life since the company’s inception till fiscal 2009. If properly priced, life
insurance policies are profitable over the life of the policy, but at the time of sale, there is a loss on account of
non-amortised expenses and commissions, generally termed as new business strain that emerges out of new
business written during the year. New Business Profit is an alternate measure of the underlying business profitability
(as opposed to the statutory profit or loss) and is the present value of the profits of the new business written
during the year. It is based on standard economic and non-economic assumptions including risk discount rates,
investment returns, mortality, expenses and persistency assumptions.
ICICI Lombard General Insurance Company
ICICI Lombard General Insurance Company (ICICI General) maintained its leadership in the private sector with
an overall market share of 9.5% in fiscal 2010. ICICI General’s gross written premium during fiscal 2010 was Rs.
34.32 billion. The industry continued to witness a slowdown in growth on account of de-tariffication of the general
insurance industry whereby insurance premiums were freed from price controls, resulting in a significant reduction
in premium rates. The industry also continued to witness the impact of motor third party insurance pool for third
party insurance of commercial vehicles. ICICI General achieved a profit after tax of Rs. 1.44 billion in fiscal 2010
compared to Rs. 0.24 billion in fiscal 2009.
ICICI Prudential Asset Management Company
ICICI Prudential Asset Management Company (ICICI AMC) was the third largest asset management company in
India. The average assets under management of ICICI AMC increased from Rs. 514.56 billion for March 2009 to
Rs. 810.18 billion for March 2010. ICICI Prudential AMC achieved a profit after tax of Rs. 1.28 billion in fiscal 2010
compared to Rs. 7.1 million in fiscal 2009.
ICICI Venture Funds Management Company Limited
ICICI Venture Funds Management Company Limited (ICICI Venture) maintained its leadership position in private
equity in India, with funds under management of about Rs. 114.40 billion at year-end fiscal 2010. ICICI Venture
achieved a profit after tax of Rs. 515.2 million in fiscal 2010 compared to Rs. 1.48 billion in fiscal 2009. The profit
for fiscal 2009 includes gains from the sale of stake in TSI Venture.
ICICI Securities Limited and ICICI Securities Primary Dealership Limited
ICICI Securities achieved a profit after tax of Rs. 1.23 billion in fiscal 2010 compared to Rs. 0.04 billion in fiscal
2009. ICICI Securities Primary Dealership achieved a profit after tax of Rs. 849.8 million in fiscal 2010 despite
the significant increase in yields on government securities, as compared to a profit after tax of Rs. 2.72 billion in
fiscal 2009.
ICICI Bank UK PLC
ICICI Bank UK PLC (ICICI Bank UK) offers retail and corporate and investment banking services in the UK and
Europe. During fiscal 2010, ICICI Bank UK continued to focus on rebalancing its deposit base towards retail term
deposits and the proportion of retail term deposits in total deposits increased from 58% at March 31, 2009 to
66% at March 31, 2010. ICICI Bank UK’s profit after tax for fiscal 2010 was USD 37.0 million compared to US$
6.8 million in fiscal 2009. ICICI Bank UK’s capital position continued to be strong with a capital adequacy ratio of
17.3% at March 31, 2010.
ICICI Bank Canada
ICICI Bank Canada is a full-service bank which offers a wide range of financial solutions to cater to personal,
commercial, corporate, investment, treasury and trade requirements. ICICI Bank Canada’s profit after tax for fiscal
2010 was CAD 35.4 million compared to CAD 33.9 million in fiscal 2009. At March 31, 2010, ICICI Bank Canada
had total advances of CAD 3.89 billion and total assets of CAD 5.68 billion. ICICI Bank Canada’s capital position
continued to be strong with a capital adequacy ratio of 23.4% at March 31, 2010.
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Annual Report 2009-2010
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