Bharti likely to sell stake in asset management JV with AXA

Bharti plans to rework its relationship with AXA, reports CNBC-TV18, quoting sources. It is looking to exit its asset management joint venture with AXA and might dilute its stake or exit if necessary. Commenting on the same, Bharti said reworking in relationship will not impact insurance business with AXA. Bharti has 26% stake in Asset Management JV with AXA. This is the one of the first steps of Bharti to rework its relationship with AXA, Bharti has categorically come out and said that it is looking at diluting its stake or even exiting Asset Management business in which Bharti holds 26% stake and remaining 74% stake is held by AXA. In other ventures where these two have a relationship is the life insurance business, where Bharti holds a 74% stake and AXA holds a 26% stake by virtue of being regulated. As of now Bharti has very categorically said that they haven’t changed anything in their insurance business but have gone ahead and seen the asset management business in which they are willing to dilute or even exit the business at this point of time.

ICICI Prudential says consolidation is way forward for industry

Mumbai (PTI): With capital becoming scarce due to the global economic meltdown, ICICI Prudential on Sunday said that consolidation and raising FDI limit to 49 per cent were the way forward to fuel the life insurance business.
"Now access to capital is shrinking and this is likely to continue for the next six months to one year...consolidation makes sense in this scenario," ICICI Prudential Life Insurance's Managing Director Shikha Sharma told PTI.

In every business, there will normally be four to five major players and 10-12 players altogether. There is, therefore, an immense potential for consolidation within the industry here, Sharma said.

Margins in India were thinner and customers more value-conscious and hence, companies needed scale to remain competitive.

"In this scenario, consolidation makes sense," she said. While ICICI Prudential Life was ready for acquisitions, there were no immediate proposals, she said, adding that the company was, however, always ready to consider any proposal that provided some synergy benefit to it.
On the need for hiking FDI limit to 49 per cent from the present 26 per cent, Sharma said that this would help the industry to access global capital.

Australia's IAG in JV talks with HDFC

Insurance Australia Group Ltd is in talks to buy 26 per cent in an Indian insurance firm founded by Housing Development Finance Corp, media reported on Monday.

HDFC in May bought out its partner Chubb Corp in a general insurance venture after an uneasy relationship stalled growth. IAG, Australia's top car and home insurer, is in "advanced" talks to buy the stake, media said, citing unnamed sources.

Other "strong contenders" were US insurer Travelers and Munich Re's insurance unit ERGO, the paper said, adding HDFC expected to receive a premium for the stake.

(Source: Economic Times)

CCBL to enter insurance sector with Aviva

Citizen's Cooperative Bank Ltd (CCBL), which has posted profits for the first time, has tied up with Aviva Life Insurance Co India Ltd to enter insurance sector.

(Source: Economic Times)

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.

When asked if HDFC is considering listing of the life insurance venture, Parekh said, ''We don't see any need to list the company as the current preferential issue made to the Carlyle Group and Citigroup will bring in enough capital. We plan to invest around Rs 500 crore of the proceeds from the preferential offer in the insurance venture, and the balance of around Rs 1,300 crore will be invested in HDFC Bank's preferential offer.

(Source: Business Standard)

Apollo-DKV JV to launch health insurance by Aug

The newly formed Apollo DKV Insurance Corporation, a joint venture between Apollo Group of Hospitals and DKV, a European insurance company, will launch its first bouquet of five health insurance products by the end of August 2007, Pratap C Reddy, chairman, Apollo Group, said.

Apollo will hold 74% equity in the company while DKV, a subsidiary of Munich Re, a re-insurance company, will hold the remaining 26%, initially. As and when the existing norms are relaxed, Apollo would increase the DKV's equity participation in the company to 49% by reducing its stake to 51%.

Reliance Capital may sell minority stake

Anil Ambani has been on a buying spree all these months picking up stakes in diverse companies through his financial services arm Reliance Capital.But now it seems he is looking for a buyer who will acquire minority stake in his insurance ventures. And foreign players waiting for a foothold in India are queuing up for a piece of the action.

NDTV has learned that ADAG group company Reliance Capital is planning to rope in a partner for the insurance business. The group is likely to sell 26 per cent each in its life and non-life insurance businesses.

Reliance's insurance businesses are valued at around $1.2-1.75 billion and contribute about 25-30 per cent of the price of the Reliance Capital share. Reliance ranks second in general insurance and fifth in life insurance among the private players.For private insurance players like Reliance it is now the investment stage where they have to pump in money to build their distribution network and also meet regulatory requirements.It will take a while for many of them to break even in the life insurance segment though ADAG group is not short of cash it may want to realise value when the going is good and when other players like ICICI Prudential and SBI Life are also looking at diluting the group holdings.

(Source: NDTV profit)

BoM planning non-life insurance foray with Shriram-Sanlam

State-owned Bank of Maharashtra (BoM) is planning to foray into the non-life insurance business by picking up a 15 per cent stake for Rs 15 crore in the proposed non-life venture of Chennai-based Shriram Group and South Africa's Sanlam.

Apart from IRDA approval for the joint venture, BoM would also require a clearance from the Reserve Bank for the venture.

(Source: Business Line)

Carlyle picks up 5.6% in HDFC

HDFC plans to raise Rs. 3114 crore via preferential offer to Carlyle Group, which translates into a 5.6% in HDFC post the issue.

The money is basically for investing in the insurance business.