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The U.S-based insurance major Prudential Financial Inc (PFI) is "fairly close" to acquiring additional stake in DHFL Pramerica Life Insurance (DPLI) so as raise its shareholding in the Indian life insurer to 49 per cent, a top company official said.
Currently, Prudential International Insurance Holdings, which is a wholly-owned subsidiary of PFI, has a 26 per cent stake in DPLI while Dewan Housing Finance Corporation Ltd (DHFL) and its two promoter entities together holding 74 per cent.
"There has been substantial progress in the talks. Prudential’s intent of moving from 26 to 49 per cent or even 50 per cent (if the law permits) was always strong. They are fairly close to it (completing the transaction)", Anoop Pabby, Managing Director & Chief Executive Officer (CEO), DPLI told Business Line.
An external consultant has already been appointed to help arrive at the valuation of DPLI and the report is awaited.
Pabby was responding to a query on the status of the talks between the two principal shareholders - U.S.-based PFI and DHFL - post the new insurance law allowing foreign investment up to 49 per cent in Indian insurance companies. Both the shareholders have been in talks for more than six months now.
He also highlighted the recent visit of Charles F Lowrey, Chief Operating officer of Prudential’s international businesses, to the Indian office and his spending couple of days in the company - far more than bigger businesses of Prudential where he spends time.
"This tells you the kind of disproportionate attention we attract among the US shareholder", he noted.
SMALL FINANCE BANKS
DPLI is now actively looking at collaborating with the 10 small finance banks that have received in-principle approval from the Reserve Bank of India (RBI).
"We have approached couple of them for long term partnerships", Pabby said.
He also said that DPLI was waiting for new scenario to emerge after the IRDA guidelines on multiple insurance partners for corporate agents get implemented from April 1, 2016.
"There could be few public or private banks that we could target for a bancassurance relationship. We now do not have a bancassurance partner. We will only stand to gain out of this IRDA guidelines on multiple insurance partners", he added.
STRONG H1
Meanwhile, DPLI has recorded a net profit of ₹ 19.3 crore for the first half ended September 30 this year. This represents a 70.7 per cent increase over the same period last year.
New business premium (NBP) income grew 44 per cent to ₹ 322 crore in the first half this fiscal. DPLI is on course to achieve the NBP target of ₹ 750 crore this fiscal, Pabby said.
Gross written premium for the period under review stood at Rs 405 crore, an increase of 42 per cent over the same period last year.
srivats.kr@thehindu.co.in
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