Credit Agricol plans insurance, MF foray

GLOBAL FINANCIAL MAJORS COME CALLING

Credit Agricol (CA), the second-largest French bank, is all set to enter the Indian insurance and asset management business.

The group, through its subsidiaries, Predica, the life insurance company, and Pacifica, the non-life insurance company, is in talks with a couple of top Indian players for a foray into insurance businesses. The Indian rules require foreign companies to hold not more than 26 per cent in Indian insurance ventures.

Credit Agricol Asset Management (CAAM) is in talks with a local brokerage house for a tie-up to launch the AMC business, according to a group executive in India.

Credit Agricol officials said it would be the AMC business that would take off first as talks for the tie-up with a local brokerage house were at an advanced stage.

CAAM is leveraging on its strength in terms of individual and corporate pension plans, the niches in the AMC business.

"We are already managing certain Asia- and India-centric funds, but those were sold to European investors. However, we are keen to target Indian investors and raise funds from here," said another group executive.

CAAM is already a leader in France with "$416 billion of assets under management, and with a market share of over 15 per cent, the group ranks second in employee saving plans in France.