3 banks, Japanese firm in non-life JV

Allahaband Bank, Indian Overseas Bank (IOB), Karnataka Bank (KBL), Dabur Investment Corporation and Sompo Japan Insurance Inc have signed a shareholders' agreement to form a new non-life joint venture insurance company to be called Universal Sompo General Insurance Company Ltd.

In the proposed company, Allahabad Bank will have 30 per cent stake, while Sompo Japan Insurance Inc will hold 26 per cent, followed by IOB (19 per cent), KBL (15 per cent) and Dabur Investment (10 per cent).

The proposed entity will now make an application to the Insurance Regulatory Development Authority for the regulator's approval.

Universal Sompo General Insurance Company intends to leverage the consortium's pan-India reach and distribution, and the brand image of the consortium members. It will also leverage the strong product and underwriting skill that Sompo has developed in the Japanese market.

This will be the first joint venture in the country of public sector banks with others having the characteristics of a private sector entity in the non-life insurance sector.