The Hindu Business Line : Legal & General, BoB, Andhra Bank sign insurance partnership

Mumbai, March 4 ‘Bank of Baroda Legal and General Insurance’, the new life insurance joint venture partnership between Bank of Baroda, Andhra Bank and the UK-based Legal and General insurance will commence operations between January and March, 2009. The two public sector banks and the UK insurance major on Tuesday signed the shareholders’ agreement for the joint venture.

The brand name of the company will be ‘Bank of Baroda Legal and General Insurance-in partnership with Andhra Bank’.

Dr A.K. Khandelwal, Chairman, Bank of Baroda, said that the company would primarily follow a bancassurance model and would not be hiring agents. “Both the banks have a combined branch network of over 4,000 branches. We hope the new company will be one of the top three players in the next five to seven years,” Dr Khandelwal said.

Bank of Baroda, Andhra Bank and Legal and General will hold 44 per cent, 30 per cent and 26 per cent stakes, respectively, in the joint venture. The new company will begin with a capital base of Rs 200 crore.

However, officials did not disclose the premium paid by Legal and General to enter the joint venture.

Sir Rob Margetts, Chairman, Legal and General, said that the company would hike its stake in the venture to 49 per cent if the Indian regulation permits an increase in Foreign Direct Investment.

“This has been worked out in the shareholders’ agreement,” Sir Rob said.

Products

On the products the new company will bring into the Indian market, Sir Rob said, “We plan to bring in products that give value for money to the rural and urban segments. Our joint venture team is working on bringing a range of products which includes savings products, Unit Linked Insurance Plans as well as pure protection and term products,” he said.

Currently, Bank of Baroda distributes the life insurance products for HDFC Standard Life while Andhra Bank sells LIC’s life insurance policies.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Loan waiver: Bounty for cane farmers

ING Vysya Life’s pension product

YES Bank bags award

Credit spreads unmoved by easy money

Rupee strengthens

Legal & General, BoB, Andhra Bank sign insurance partnership

ICICI Bank takes $264-m hit on overseas credit exposure

ICICI Bank’s derivatives exposure at over $2.2 b

Chief Economist of World Bank — The man for the job

Prudential norms for letters of comfort

Yields harden by 5 bps

DCB ties up with ICICI Bank for cards biz

IBA, bank unions finalise schedule to discuss demands

Govt may issue commitment letter for SBI rights offer

Arcil to raise Rs 1,400 cr by April-end

New CFO for SKS Microfinance