Bank of Baroda, Andhra Bank and Legal and General Group of UK have signed the shareholder’s agreement for a joint venture to launch life insurance operations. The MoU for the joint venture was signed on 16th November 2007.
BoB, Andhra Bank and Legal and General will hold 44 per cent, 30 per cent and 26 per cent respectively in the life insurance venture named Baroda Legal & General Life Insurance Co. The company is likely to launch operations between January and March 2009, subject to regulatory approvals, at an initial capital of Rs 200 crore.
the new entity will be a pure bancassurance driven company and will not hire agents. The two banks have 4000 branches and 45 million customers.BoB has a bancassurance tie-up with HDFC Standard Life Insurance, while Andhra Bank has tied up with LIC. Both these will end once the proposed company begins operations in 2009.Legal and General has funds under management amounting to $550 billion. It is a leading UK risk, wealth and investment company with a market capitalisation of $15 billion.
Read more in
The Business Standard article.
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BoB, Andhra Bank in insurance venture talk
Showing posts with label Legal and General. Show all posts
Showing posts with label Legal and General. Show all posts
Wednesday, March 5, 2008
Wednesday, June 27, 2007
BoB, Andhra Bank in insurance venture talk
Bank of Baroda (BoB) has initiated discussions with the Hyderabad-based Andhra Bank to form a tripartite venture to foray into life insurance, officials close to the development said.
BoB has already signed a memorandum of understanding with the UK-based insurer Legal & General for the proposed life insurance company.BoB will hold 50 per cent stake in the joint venture, while Legal & General will have 26 per cent, the maximum permissible limit for a foreign insurer in India.
“According to the proposal from BoB that came last month, Andhra Bank can hold 24 per cent in the joint venture,” an official said.When contacted, Andhra Bank Chairman and Managing Director K Ramakrishnan said, “I do not want to comment on the issue at this stage.” BoB officials were not available for comment. The insurance venture will have an initial capital of about Rs 200 crore.
According to the Reserve Bank of India’s guidelines, public sector banks are not allowed to hold more than 51 per cent in an insurance venture.Owing to this norm, the state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture.After finalising the third partner, Bank of Baroda will seek approval from the RBI.
Read more in The Business Standard article.
BoB has already signed a memorandum of understanding with the UK-based insurer Legal & General for the proposed life insurance company.BoB will hold 50 per cent stake in the joint venture, while Legal & General will have 26 per cent, the maximum permissible limit for a foreign insurer in India.
“According to the proposal from BoB that came last month, Andhra Bank can hold 24 per cent in the joint venture,” an official said.When contacted, Andhra Bank Chairman and Managing Director K Ramakrishnan said, “I do not want to comment on the issue at this stage.” BoB officials were not available for comment. The insurance venture will have an initial capital of about Rs 200 crore.
According to the Reserve Bank of India’s guidelines, public sector banks are not allowed to hold more than 51 per cent in an insurance venture.Owing to this norm, the state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture.After finalising the third partner, Bank of Baroda will seek approval from the RBI.
Read more in The Business Standard article.
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