A high-level team from US insurer Travelers is in town to finalise a joint venture partner for non-life insurance. According to sources, the American insurer is in talks with HDFC to buy a 26% stake in HDFC Chubb General Insurance, following the buyout of Chubb’s stake by HDFC.
Travelers was spun off as an independent non-life insurer from Citigroup, which currently holds around 12% in HDFC. On Wednesday, HDFC chairman Deepak Parekh said that he expected to receive a premium for the 26% stake in HDFC Chubb General Insurance. “The partner will get the advantage of the HDFC brand, an existing business and infrastructure. So we do expect a premium for our stake,”
Mr Parekh added. HDFC has been allowed to use the HDFC Chubb name for two months. The corporation said that it expected to have a partner in place before the renaming. At present, Suresh Menon, general manager, Mumbai region, HDFC, has been appointed to the non-life insurance venture.
Showing posts with label HDFC Chubb. Show all posts
Showing posts with label HDFC Chubb. Show all posts
Friday, June 29, 2007
Thursday, June 28, 2007
Standard Life to up stake in HDFC JV to 26%
UK-based life insurance company Standard Life will increase its stake in HDFC Standard Life Insurance Company to 26% from 14%.
The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.
Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula. For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''
HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
Read more in The Business Standard article.
The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.
Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula. For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''
HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
Read more in The Business Standard article.
Wednesday, May 16, 2007
HDFC buys out Chubb in non-life JV
HDFC has bought out its US partner Chubb from its non-life insurance joint venture. The shareholders have approached IRDA with their decision to part ways.
After the buyout, HDFC Chubb General Insurance will be a wholly-owned subsidiary of HDFC. The corporation is likely to bring in another foreign partner in the future. HDFC has already been approached by insurance groups from the US, Europe and Japan for its proposed non-life venture.
The HDFC Chubb separation is the first instance of a failed marriage in the insurance industry. Both partners are keen on the non-life business in India, but irreconcilable differences had arisen over the way the business is run.
Although HDFC has refused to confirm it, sources said that HDFC has paid a nominal amount close to the par value of shares. HDFC Chubb has a paid-up capital of Rs 125 crore to which HDFC has contributed Rs 92.5 crore and Chubb Rs 32.5 crore.
Read more in The Economic Times article.
After the buyout, HDFC Chubb General Insurance will be a wholly-owned subsidiary of HDFC. The corporation is likely to bring in another foreign partner in the future. HDFC has already been approached by insurance groups from the US, Europe and Japan for its proposed non-life venture.
The HDFC Chubb separation is the first instance of a failed marriage in the insurance industry. Both partners are keen on the non-life business in India, but irreconcilable differences had arisen over the way the business is run.
Although HDFC has refused to confirm it, sources said that HDFC has paid a nominal amount close to the par value of shares. HDFC Chubb has a paid-up capital of Rs 125 crore to which HDFC has contributed Rs 92.5 crore and Chubb Rs 32.5 crore.
Read more in The Economic Times article.
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