Old Mutual Plc to up stake in life insurance venture

The UK-based Old Mutual Plc plans to enhance its stake in Kotak Mahindra Old Mutual Life Insurance Company Ltd (KMOLIC).

At present the company holds 26 per cent in Kotal Mahindra Old Mutual Life, with Kotak Mahindra Bank holding the rest.

"Old Mutual Plc of UK is interested in hiking its stake in KMOLIC, with the central government's decision to enhance the FDI cap from 26 per cent to 49 per cent. However, the management control of KMOLIC will remain with the Kotak Mahindra Bank, which will continue to hold majority stake," Shekhar Bhandari, vice-president, sales, Gujarat and Karnataka, Kotak Mahindra Old Mutual Life, said.

Kotak Mahindra Old Mutual Life, a joint venture between Kotak Mahindra Bank and Old Mutual Plc, was incorporated in 2001, when the government opened up the insurance sector.

Old Mutual Plc is one of the world's leading financial services companies with an asset base of over $ 235 billion as on December 31, 2003, while Kotak Mahindra group is a leading financial services group with net worth of over Rs 1,550 crore.

Kotak Life Insurance is applying Old Mutual's successful tied agency distribution model in India.

Through this model, the company enables its salesforce to provide high quality expert advice to the customers in their financial decisions. Old Mutual has one of the best tied agency distribution models in the world.