The Hindu : Business : LIC to forge alliance for overseas forays

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Wednesday, Sep 07, 2005

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Business

LIC to forge alliance for overseas forays

Slated to start operations in Saudi Arabia

NEW DELHI: The Life Insurance Corporation of India plans to forge a joint venture for foraying into Australia and New Zealand markets.

"We have shortlisted some of the companies. The due-diligence process is on," LIC Chairman, A. K. Shukla, told PTI but declined to name the companies. Indications are that LIC is likely to tie-up with New India Assurance and a local partner. LIC has decided to foray into overseas markets where New India Assurance has operations.

The Government has provided Rs. 280 crore to LIC in the budget for seed capital required for its overseas ventures. If the deal in Australia materialises, it will be one of the third mature markets where LIC will have a toehold.

The state-owned insurer is present in the U.S. through a broking arm and also in the U.K.

LIC has greater presence in some of the Gulf nations through its arm, LIC International (Bahrain). The insurer is slated to start operations in Saudi Arabia, where it will have a joint venture with New India Assurance and the local partner, Al Hoiker group.

LIC, LIC International (Bahrain) and New India Assurance will hold 31 per cent stake while Al Hoiker group will have 29 per cent interest in the Indo-Saudi Insurance Company being floated with an initial capital of about Rs. 114 crore.

The remaining 40 per cent will be offered to the public through an initial public offering.

LIC is also focusing on its Mauritius operations and eyeing other African markets like Botswana. — PTI

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