How has the global turmoil affected Prudential's businesses worldwide?

Investor confidence has been affected globally. The environment has been getting tougher. In our view, its one of the many cycles. Our global losses for the first half year are �100 million. The Prudential model is an immensely strong model, besides factors such as geographical diversity and our capital balance sheet have helped us.

ICICI Prudential Life Insurance's losses have increased, its expense ratios are rising. So far, over Rs 4,000 crore of capital has been infused. What about breakeven and listing?

We have remained the market leader for the last seven years. During April-August, we had a market share of 13.7 per cent as against 12.7 for the last year. The nature of life insurance business is such that it takes 9-12 years to breakeven. Life insurance is a long term business.

We are moving in the right direction. The insurance company has over 2,000 branches and a top quality team. The company's management has done an excellent job. We are very happy and pleased with our India business. We have great ambitions.

A number of initiatives are being taken to reduce the expense ratios. In the next 2-3 years, we expect to breakeven. We have no plans for listing the life insurance company immediately and will do so in the next three years.

The government is likely to relax the foreign direct investment norms. What is the arrangement between Prudential and ICICI Bank on increasing your stake from 26 to 49 per cent?

We continue to observe the situation carefully. The share price will depend on the valuation and economics of the business at that point of time.

With market volatility continuing, do you see prospective insurance buyers moving away from Ulips to conventional policies?

An insurance company should have a mix of traditional and Ulips. ICICI Prudential Life has got great products which are a mix of both traditional and Ulips.

What is your comfort level with a joint venture partner (ICICI Bank), which  has been dealing with  persistent rumours in the market?

Our partnership with ICICI Bank continues to remain strong. We have an exceptional relationship with them.