Murugappa group plans to enter life insurance sector
K.T. Jagannathan
CHENNAI: The $ 2 billion Murugappa Group is seriously toying with the idea of entering into life insurance business too, it is learnt. According to highly placed sources, the Group's keenness to enter the life insurance business is spurred by the success of its foray into general insurance field, where its joint venture with Mitsui Sumitomo Insurance Company (MSI) has not only broken even but also growing fast.
Sources said the Group would go in far a partnership with Mitsui Sumitomo for the life venture as well. The Japanese company, these sources said, was also eager to associate with the Murugappa Group in the proposed life insurance venture. Mitsui Sumitomo is the second largest insurance Group in Japan with a net written premium of $12.46 billion in 2006.
These sources further said that the Murugappa Group was, in fact, looking for a three-way partnership for its proposed life insurance business. The Group, they said, was in discussions with a few public sector entities in the financial field. They, however, declined to divulge any details of the parleys. The Group would firm up its plans on the life insurance side very soon, these sources added.
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