The Insurance Regulatory and Development Authority (IRDA), on Thursday gave its approval to the proposed life insurance joint venture company of Canara Bank, Oriental Bank of Commerce (OBC) and HSBC Insurance (Asia-Pacific).
The JV, in which Canara Bank will hold a majority 51 per cent stake, will be known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited and has already been capitalised at USD 81 million (Rs 325 -crore).
HSBC Insurance, which is understood to have invested around Rs 177 crore in the JV, will have a 26 per cent stake in the company while OBC will hold 23 per cent stake.
While officials of were not available for comments, it is understood that the investment by Canara Bank and OBC are Rs 102 crore and Rs 46 crore respectively. Canara Bank, in which the Government has a 73.17 per cent stake, has over 2,600 branches and an asset size of USD 45.2 billion, while OBC has a branch network of 1,402 while its asset size stands at USD 22.61 billion as on March 31, 2008.
Showing posts with label IRDA. Show all posts
Showing posts with label IRDA. Show all posts
Friday, May 9, 2008
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.
Tuesday, March 6, 2007
DLF plans Rs1,000cr spend in life insurance JV
Real estate giant DLF today announced its tie-up with US-based financial player Prudential Financial, Inc (PFI) for a foray in life insurance business and said the two partners will invest about Rs 1,000 crore over the next ten years in the venture.The company is applying for a licence from the Insurance Regulatory and Development Authority (IRDA), and hopes to start operations by early 2008.
A DLF spokesperson said both the partners would have representatives on the board, while Prudential would take care of the operations.
Read more in The Business-Standard article.
A DLF spokesperson said both the partners would have representatives on the board, while Prudential would take care of the operations.
Read more in The Business-Standard article.
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