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MetLife is targeting 20 per cent annual growth in operating income from the Indian venture and 10 per cent increase in earnings.

Bangalore , Nov. 15

METLIFE, the world's largest insurance company, is trying to get a majority stake in the domestic joint venture, MetLife India Pvt. Ltd.

Mr William J. Toppeta, President, MetLife International Holdings Inc, said here, "We are lobbying with the Government to permit us to increase our stake''.

MetLife International is the subsidiary of MetLife. While MetLife has 26 per cent stake in MetLife India, the other joint venture partners, M Pallonji Group and Jammu & Kashmir Bank Ltd hold about 31 per cent and 25 per cent, respectively. Institutions and small business groups privately hold the remaining 18 per cent.

Mr Toppeta said MetLife aimed to make India its largest market outside the US, by 2006. It is also prepared to bring the capital to fund the growth. "We are prepared to bring in as much as necessary for the purpose but the regulations need to be changed," he said. " We are hopeful that decision on the issue would be taken by the next year itself," he added.

Asked whether MetLife would be looking for 100 per cent stake, Mr Toppeta said, " That would be most ideal, provided our existing partners agree."

He, therefore, said that if the regulations were liberalised, the company would look for either the equity dilution route, by bringing in additional foreign equity and raising its stake, or buying out the domestic partners and then bring in the additional funds.

The parent company is targeting 20 per cent annual growth in operating income from the Indian venture and 10 per cent increase in earnings. MetLife India has so far sold about 23,000 policies since inception of operations.

For meeting the high growth rate, Mr Toppeta said MetLife would leverage on its long relationships with the international companies, which have domestic operations. It has a 100-year relationship with General Motors, and equivalent number with General Electric.

For both these companies, MetLife has been providing group insurance and group pension products. It has similar long-term relationships with at least 88 of the top 100 Fortune 500 companies. With each of these companies, MetLife hoped to have similar relationships in the domestic market as well.

Mr Venkatesh Mysore, Managing Director of MetLife India, said that its agency force and its bancassurance arrangements would drive the growth.

It is also entering into additional agreements for selling its highly successful product, Met Mortgage, which is aimed at housing loan customers.

MetLife India currently has bancassurance arrangements with J&K Bank, Karnataka Bank and Dhanalakshmi Bank. It plans to consolidate further by extending these arrangements to more banks.

However, he said, MetLife India has no plans to set up a separate asset management company.

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