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The US-based Liberty Mutual Insurance Group is not looking to increase its shareholding in Mumbai-based Liberty Videocon General Insurance, a top official of the Indian joint venture said. This is even as the recent insurance law amendment allowed foreign investors to hike their shareholding in Indian insurance companies to 49 per cent.
In December last year, Liberty Mutual Insurance Group, which holds 26 per cent, with Videocon Industries Limited, which holds 74 per cent, had infused ₹320 crore in Liberty Videocon General Insurance.
“The current intent of the foreign promoter is not to raise its shareholding in Liberty Videocon General Insurance till the next round of capital mop-up, which is expected only in 2016 end,” Roopam Asthana, Chief Executive Officer, Videocon General Insurance, told BusinessLine .
After the recent capital infusion, Liberty Videocon General Insurance is capitalised at about ₹680 crore. With a solvency ratio of 6.7 per cent, the joint venture is in no hurry to raise fresh capital.
Most of the latest tranche of capital will be used to further expand the company’s portfolio and its distribution capabilities, besides improving its technology platform, Asthana said.
The joint venture, which has a pan-India presence, is looking to increase its network from 30 to 45 branches this fiscal, he said.
Asthana said the joint venture general insurer was eyeing 60 per cent growth in gross written premium for the current fiscal at ₹480-490 crore, from a last fiscal level of about ₹300 crore.
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