In the midst of a credit crisis, private sector insurer MetLife India Insurance Company has got a capital infusion of Rs 100 crore to help expand its business and expects more foreign equity once insurance sector FDI norms are liberalised, a top official of the company said.
"The Board of the company decided in September-end to increase paid-up capital by Rs 100 crore to support its expansion plan," MetLife India Insurance Company Managing Director Rajesh Relan told PTI.
This is the biggest expansion that MetLife India is carrying out since its inception in 2001 and fresh investment would help it double the branch network, Relan said.
Subsequent to the Board's decision, the company sought necessary clearances and the same were obtained in October.
As a result, the paid-up capital of the second fastest growing life insurer in the private sector will go up to Rs 1,580 crore.
The US-based insurance giant MetLife holds a 26 per cent stake in the Indian company, which was incorporated over seven years ago as a joint venture among MetLife International Holdings Inc, Jammu & Kashmir Bank, M Pallonji & Co and other private investors.
More From This Section
When asked about the foreign partner would look at increasing its stake and put in more capital into the company once the proposal to hike FDI in insurance sector from 26 per cent to 49 per cent comes into force, MetLife India chief said, "the foreign partner will increase its participation from its existing 26 per cent stake", but did not specify the exact level.
Union Cabinet last month approved draft amendment to the Insurance Act for hiking the FDI limit to 49 per cent from present 26 per cent for introduction in Parliament in December.