Metlife will continue to hold 26% stake in the company. Other stakeholders in the company include J&K Bank (5%), Elpro International (21%) and M Pallonji & Co (18%).
“Partnering with MetLife will give us access to global products and the risk management expertise of MetLife,” said KR Kamath, Chairman & Managing Director, PNB. He said the acquisition would make PNB Metlife ninth largest insurance company in India in terms of new business premium.
Kamath refused to disclose the amount paid by PNB for acquiring 30% ownership interest in the company saying other shareholders wanted to keep the information confidential. He said, if required, the bank would infuse more capital into the company.
PNB will bring to Metlife its 5,900 branches and over 78 million customers across the nation. MetLife, with 90 million customers worldwide, has been operating in India since 2001.
Christopher Townsend, President, Asia, MetLife, said; “As a dynamic emerging market, India is a key strategic focus for MetLife, and we are proud to be partnering with PNB.”
In October last year the Insurance Regulatory and Development Authority (Irda) had approved transfer of shares from existing shareholders of MetLife Insurance to PNB on the condition that shares held by the bank would be locked in for five years from the date of transfer.
Earlier the regulator had expressed concerns that the deal was not consistent with Indian Accounting Standards as PNB had reportedly planned to buy the stake for Re 1 only.
