*Sundaram Finance* is exiting its general insurance JV - *Royal Sundaram Alliance Insurance Co. Ltd* by selling its 74% stake to its foreign partner *RSA Insurance Group Plc*.
Royal Sundaram is 74:26 JV between Sundaram Finance Ltd and RSA. Royal Sundaram was the first private non-life insurance company licensed to operate in India. It offers Motor, Health, Personal Accident, Home and Travel Insurance. Royal Sundaram currently has over 2.5 million customers, over 1750 employees and its products are distributed in over 150 cities across India, through Agents, Distribution Partners, Affinities and Brokers. Transaction Reference: Transaction Note Earlier in Nov'09, Royal Sundaram Alliance tied up with *Geojit BNP Paribas*to offer savings and investment solutions. According to the deal, Geojit will distribute all of Royal Sundaram's products across its ofices. RSA - formerly known as Royal & SunAlliance - is the second largest insurer in UK. RSA writes business in over 130 countries, with major operations in UK, Scandinavia, Canada, Ireland, Asia and the Middle East and Latin America. Since the regulations dont allow a foreign entity to own more than 26% in an insurance venture, RSA will merge the entity with *Reliance General Insurance Co. Ltd*. and take a 26% stake in the merged entity. *Ernst & Young* is conducting the due diligence for the merger. Reliance General Insurance has been looking for a foreign partner for quite sometime and there was even a rumor that it would induct Boston based Liberty Mutual Insurance Co. Ltd as ts foreign partner. This will be the first merger in the insurance space. The combined entity will have over 5 Mn customers and gross written premiums would be Rs 3000 Cr. This news comes just a day after another ADA group Company - Reliance Life Insurance Co. Ltd. announced that it may sell 26% stake to Swiss Reinsurance Co. Ltd. for about Rs 700 Cr. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
