ICICI Prudential Life Insurance Company Ltd has posted a 132 per cent increase in first premium income at Rs 70 crore (Rs 0.70 billion) for the quarter ended June 30, 2003, while its promoters have brought in an additional Rs 100 crore (Rs 1 billion) capital, taking the equity base to Rs 525 crore (Rs 5.25 billion).

The life insurance firm, a joint venture of ICICI Bank and the United Kingdom-based financial services major Prudential Plc, has issued 51,000 new policies in the first quarter of the current fiscal, company managing director and chief executive Shikha Sharma told reporters in Mumbai on Tuesday.

The total premium income, including the renewal premium, stood at Rs 97 crore (Rs 0.97 billion) for April-June 2003. The company has sold about 400,000 policies till June 2003.

The average premium on the regular premium policies has grown to Rs 16,000 from Rs 13,000, Sharma said.

"The current high growth rate, overtaking the industry growth rate, would continue for five to six years. We expect it to slow down beyond to align with the sectoral trend," she added.

ICICI and Prudential have brought in additional capital in the ratio of their respective holding in the joint venture (74:26), taking the total capital base to Rs 525 crore, Sharma added.

On expanding into the rural areas, she said while it would remain a focus, Insurance Regulatory and Development Authority's definition of what constitutes a rural area was quite narrow.

The company has done adequate business in the rural area, especially in Punjab to avoid any default on the IRDA requirements, she said.