US insurer Metlife Inc plans to exit its India insurance venture to concentrate on its home market where challenges are mounting. The Indian venture has grown significantly in the past few years after Punjab National Bank became a 30% stakeholder in 2013. But the US company is among the few overseas investors that didn’t take advantage of the rise in the limit on foreign holding in insurance to 49% from 26%, a shift that has sparked consolidation in the industry. PNB Metlife is valued at about Rs 6,500 crore, said two people aware of the development, with an embedded value of Rs 2,100 crore.
“Metlife is planning to sell its (26%) stake in the Indian life insurance venture,” said one of them. “Discussions have begun with global investment banks. Metlife is looking to globally restructure its businesses.”
“Metlife’s senior management visited India recently and they have decided to exit this market owing to the poor performance of the JV,” said the second person. “They have hired an investment bank and are reassessing the market.”
No comments:
Post a Comment