Financial Daily from THE HINDU group of publications
Friday, Oct 07, 2005
Financial Daily from THE HINDU group of publications Friday, Oct 07, 2005 |
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Money & Banking
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Life Insurance Max New York Life rules out IPO for now Our Bureau
Mr Gray G. Benanav (left), Chairman, New York Life International; Mr Analjit Singh, Chairman, Max New York Life India; Mr Joseph G., President & CEO, New York Life International; and Mr Frederick J. Sievert, President, New York Life Insurance Company, at a press conference in the Capital on Thursday. — Kamal Narang
New Delhi , Oct. 6 MAX New York Life Insurance Co (MNYL) has ruled out any immediate plans to come out with an initial public offer but hinted that the company could be ready to list on the stock exchanges in a couple of years. "We would like to go to the market when value creation is best for us. However, we do not have any active work going on in this regard," the Chairman, MNYL, Mr Analjit Singh, said while addressing the media on Thursday after the meeting of the company's board of directors. MNYL is expected to show profits under Indian GAAP within three years while it has already started showing profits under the US GAAP. Speaking on the occasion, Mr Frederick J. Sievert, President, New York Life Insurance Company, agreed with the US Ambassador, Mr David C Mulford, that the foreign direct investment cap in the insurance sector needs to be raised to at least 49 per cent. "We are concerned. We would like to see the FDI cap raised to 49 per cent," Mr Sievert said. New York Life holds 26 per cent stake in the Indian venture while Max India holds the remaining shares. Mr Singh, however, said the impression that he got during his interaction with officials was that as far as the Government was concerned, the FDI hike was "a done deal." He said that it was "well known" why the process was being held up alluding to the political opposition to such moves. "It (FDI cap hike) has to happen. It is not going to happen in weeks or months but in some quarters," Mr Singh said. However, he said that the FDI cap has never been an issue between the two partners in MNYL. "From the beginning we have an agreement that the moment the regulations permit Max and New York Life would both hold 50 per cent each in the venture," Mr Singh said. Mr Sievert said that the US parent company is "very pleased" with the performance of MNYL. "We are opening an office a month and we hope to continue to do so in the coming year. We also hope to maintain quality of service," he said. Mr Rajesh Sud, Executive Director (agency, bancassurance and direct sales distribution), MNYL, said that in the five years of its operations, the company has already underwritten sum assured to Rs 18,300 crore. "The Board has given us the signal to grow further and expand operations," Mr Sud said.
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