The Hindu Business Line : Birla Sun Life rules out general insurance foray for now

BIRLA Sun Life Insurance (BSLI), a joint venture between the Aditya Birla Group and Sun Life Financial Inc of Canada, has no plans to enter the general insurance business for the present.

The Canadian company, which has a 24 per cent stake in the insurance venture with the Birlas, is inclined to consider the question of hiking its stake if the rules are amended to allow FDI in insurance sector to 49 per cent.

Speaking to presspersons here on the occasion of opening of the Coimbatore branch of BSLI, Mr Nani Javeri, CEO, said the two groups have two other joint ventures in which they have equal partnership - Birla Sun Life AMC than runs the Birla Sun Life Mutual Fund and also a distribution company.

He said the "intention is to have 50:50 partnership" (in the insurance company also) but because of legal reasons, for the time being it is 76:24, with the Birla group holding the majority stake.

He said the insurance venture has a capital of Rs 315 crore. Sun Life Financial is inclined to pump in more capital to increase its stake once the decks are cleared for it.

Asked as to whether BSLI was eyeing entry into general insurance business as well, as some of the private life insurers have done already in India, he said the company has no immediate plans to enter this field and Sun Life was not in this line of business.