The Hindu Business Line : New non-life insurance joint venture formed

The consortium partners: (From left) Mr Ananthakrishna, Chairman & CEO, Karnataka Bank; Mr A. C. Mahajan, CMD, Allahabad Bank; Mr Vinod Rai, Secretary, Finance; Mr T. S. Narayanasami, CMD, Indian Overseas Bank; and Mr Keishiro Kinoshita, Managing Executive officer, Sompo Japan Insurance, at the shareholder signing ceremony in the Capital.

New Delhi , Nov. 9

Allahabad Bank, Indian Overseas Bank, Karnataka Bank Ltd, Dabur Investment Corporation and Sompo Japan Insurance Inc have come together to form a non-life insurance company. This is being termed as the first joint venture of public sector banks with others in the non-life insurance category.

Announcing this on Wednesday, the banks and others concerned said they have executed a shareholders agreement for the formation of the company. This would be subject to necessary regulatory approvals, they said. The proposed company shall be called Universal Sompo General Insurance Company Ltd.

As regards the shareholding pattern, they said Allahabad Bank would have 30 per cent stake, Indian Overseas Bank - 19 per cent, Karnataka Bank Ltd - 15 per cent. While Dabur Investment Corporation will hold 10 per cent Sompo Japan Insurance Inc will have 26 per cent. The proposed entity will make an application to the Insurance Regulatory Development Authority for approval.

The proposed company intends to leverage the pan-India reach and brand image of the consortium members, they said. It would also leverage on the strong product and underwriting skill that Sompo has developed in the Japanese market. Apart from distribution, the non-life insurance business provided the banks an excellent opportunity to cross-sell insurance products along with traditional banking products. Sompo Japan Insurance Inc is one of the largest non-life insurance companies in Japan.

Among those present on the occasion were Mr Vinod Rai, Secretary (Financial Sector), Ministry of Finance; Mr A.C. Mahajan, Chairman & Managing Director, Allahabad Bank; Mr T.S. Narayanasami, CMD, Indian Overseas Bank; Mr Ananthakrishna, Chairman & CEO of Karnataka Bank; Mr Mohit Burman, Partner, Dabur Investment Corporation; and Mr Keishiro Kinoshita, Managing Executive Officer, Sompo Japan Insurance Inc.