The Hindu Business Line : Shriram group to exit Armour Consultants

The Chennai-based Shriram group intends to exit Armour Consultants Pvt Ltd, the country's largest non-life insurance broking company. An application for approving the change of shareholding pattern is under the consideration of the Insurance Regulatory and Development Authority (IRDA), sources in IRDA told Business Line.

It is understood that Shriram's holding in Armour, which is with several companies of the group, will be sold to professionals who run the company.

It is not clear what the exact holding of the group is or for what consideration the stake would be sold to the professionals.

Shriram group officials have said that they would not like to comment on the matter until they got IRDA's approval.

But the group initially had about 85 per cent stake in the company. A couple of months ago, W.J. Towell, an industrial group of Oman, picked up 26 per cent in the company.

Among the other major shareholders is the Chennai-based Integrated Enterprises group, which has interests in various financial services and is also one of the principal shareholders of City Union Bank.

Industry sources said that since Shriram group intends to enter non-life insurance business — it is already into life insurance — it would be difficult for the group to be in insurance broking also.

The group's Chairman, Mr R. Thyagarajan, noted that broking business was essentially a "professional business like auditing" and that the Shriram group had intended only to be a facilitator in establishing a broking company.

Last year, Armour collected premium income of around Rs 150 crore and earned commission of around Rs 10 crore.

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