The Hindu Business Line : AMP, Sanmar may exit life insurance venture

It had a market share of 0.36 per cent in premium collected. Other rivals had forged ahead. AMP officials in Australia had said yesterday that the three-and-half-year-old joint venture was several years from being profitable.

Both partners, AMP and Sanmar have stated their intention to "review stakes".

When asked if it would mean that the Sanmar group would be willing to exit the life insurance business, Mr Graham Meyer, Managing Director, AMP Sanmar Life Insurance Company, said, "Sanmar joined the life insurance business joint venture at the invitation of AMP.

"Considering AMP's knowledge and experience in the life insurance business, the direction and management of the company was with AMP. While Sanmar believes that the life insurance industry has an excellent future in India, and that the company is poised for good growth, it does not have the knowledge of the life insurance business to manage it on its own."

When asked why AMP wanted to exit the life insurance business in India, the biggest market in the world, and focus on relatively smaller markets of Australia and New Zealand, Mr Meyer, said, "The entry was a different strategy under a former management team.

"In the last two years, AMP has exited a number of markets to focus on Australia and New Zealand. This is a continuation of that strategy."

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