ICICI Bank 2011 Annual Report Download - page 44

KEY SUBSIDIARIES
ICICI Prudential Life Insurance Company (ICICI Life):
ICICI Life maintained its market leadership in the private sector with an overall market share of 7.3% based on retail
new business weighted received premium in fiscal 2011. Effective September 1, 2010, the Insurance Regulatory and
Development Authority specified changes such as cap on surrender charges, charges applicable from the sixth year
of policy, an increase in minimum premium paying term and introduction of minimum guaranteed returns on pension
products. ICICI Life’s total premium increased by 8.2% to ` 178.81 billion in fiscal 2011. ICICI Life’s new business
annualised premium equivalent was ` 39.75 billion in fiscal 2011. ICICI Life achieved a profit after tax of ` 8.08 billion
in fiscal 2011. The expense ratio, defined as the ratio of expenses (excluding commission and front line sales cost) to
total premium, has decreased from 19.5% in fiscal 2010 to 17.3% in fiscal 2011. ICICI Life’s unaudited New Business
Profit in fiscal 2011 was ` 7.13 billion.
ICICI Lombard General Insurance Company (ICICI General)
ICICI General maintained its leadership in the private sector with an overall market share of 9.6% in fiscal 2011. ICICI
General’s gross written premium grew by 28.5% from ` 34.31 billion in fiscal 2010 to Rs. 44.08 billion during fiscal
2011. As per Insurance Regulatory and Development Authority’s order dated March 12, 2011, all general insurance
companies were required to provide for losses on the third party motor pool, a multilateral reinsurance arrangement
covering third party risk of commercial vehicles, at a provisional rate of 153% over fiscal 2008 to fiscal 2011 compared
to the earlier loss rate of 122%-127%. The impact of the same on ICICI General was ` 2.72 billion. As a result of the
negative impact on this account, ICICI General recorded a loss of ` 0.80 billion in fiscal 2011.
ICICI Prudential Asset Management Company (ICICI AMC)
ICICI AMC is the third largest asset management company in India with an average AUM of ` 734.66 billion for the
quarter ended March 31, 2011. ICICI AMC achieved a profit after tax of ` 0.72 billion in fiscal 2011.
ICICI Venture Funds Management Company Limited (ICICI Venture)
ICICI Venture maintained its leadership position as a specialist alternative assets manager based in India. ICICI Venture
achieved a profit after tax of ` 0.72 billion in fiscal 2011.
ICICI Securities Limited and ICICI Securities Primary Dealership Limited
ICICI Securities achieved a profit after tax of ` 1.13 billion in fiscal 2011. ICICI Securities Primary Dealership achieved a
profit after tax of ` 0.53 billion in fiscal 2011.
ICICI Bank UK PLC (ICICI Bank UK)
ICICI Bank UK is a full service bank that offers retail, corporate and investment banking and private banking services
in the United Kingdom and Europe. During the year, ICICI Bank UK focused on liquidity management, enhancing
profitability and risk containment through balance sheet consolidation. ICICI Bank UK’s profit after tax for fiscal 2011
was USD 36.6 million. At March 31, 2011, ICICI Bank UK had total assests of USD 6.4 billion. ICICI Bank UK’s capital
position continued to be strong with a capital adequacy ratio of 23.1% at March 31, 2011.
ICICI Bank Canada
ICICI Bank Canada is a full-service direct bank that 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 2011
was CAD 32.4 million. At March 31, 2011, ICICI Bank Canada had total assets of CAD 4.5 billion. ICICI Bank Canada had
a capital adequacy ratio of 26.3% at March 31, 2011.
KEY RISKS
We have included statements in this annual report which contain words or phrases such as ‘will’, ‘expected to’,
etc., and similar expressions or variations of such expressions, may constitute ‘forward-looking statements’. These
forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results,
opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These
risks and uncertainties include, but are not limited to, the actual growth in demand for banking and other financial
Business Overview
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