Videocon Industries along with US-based Liberty Mutual Group-- a leading global property and casualty insurer with 2009 revenues in excess of $31 billion-- signed a joint venture agreement to enter the non-life insurance segment.
The joint venture will to provide personal and commercial insurance products through a range of distribution channels. The two companies intend to begin the licensing application process for the new company before the end of this year.
Under the proposed agreement, Liberty Mutual Group, through a subsidiary, will initially hold a 26 per cent stake in the new company and Videocon Industries will hold 74 per cent. Liberty Mutual Group will also have the option to raise its stake in the joint venture in line with the Regulatory guidelines on FDI.
“India’s rapidly growing economy and expanding middle class, demonstrated by per capita GDP growth of more than 150 per cent over the past 10 years, means that ever more Indians will be buying insurance to protect their property and possessions. Entering India’s insurance marketplace in these exciting times offers a tremendous growth opportunity for our international operations while reinforcing our position among the leading global insurance companies,” said Edmund F Kelly, Liberty Mutual Group’s Chairman and Chief Executive Officer.
