India front-runner in final three
IAG’s quest for an international stake in the rapidly expanding Asian insurance market could be set to materialise.
Australia’s largest domestic insurer is reportedly one of three companies vying to be the global partner in the Housing Development Finance Corporation (HDFC) insurance joint venture in India.
Indian press reports say HDFC has shortlisted the field of candidates to three: IAG, US-based Travelers, and another unnamed US insurer. Munich Re’s Ergo insurance unit has apparently been ruled out as a partner, although the company is seeking other opportunities in India.
Quoting an unnamed official, the reports say HDFC will announce by mid-August the purchaser of a 26% stake in its insurance company.
Chubb Corp previously owned 26% of HDFC but parted ways with the Indian group earlier this year due to tension over flat earnings.
IAG has been looking to build its overseas book over the past couple of years to offset stalled earnings in its domestic portfolio.
The Indian insurance market was worth $7.35 billion in 2006 and grew 13% over the same period. India is one of Asia’s great untapped markets for insurers. The population of more than 1 billion has an insurance penetration of just 0.6%.
Australia’s largest domestic insurer is reportedly one of three companies vying to be the global partner in the Housing Development Finance Corporation (HDFC) insurance joint venture in India.
Indian press reports say HDFC has shortlisted the field of candidates to three: IAG, US-based Travelers, and another unnamed US insurer. Munich Re’s Ergo insurance unit has apparently been ruled out as a partner, although the company is seeking other opportunities in India.
Quoting an unnamed official, the reports say HDFC will announce by mid-August the purchaser of a 26% stake in its insurance company.
Chubb Corp previously owned 26% of HDFC but parted ways with the Indian group earlier this year due to tension over flat earnings.
IAG has been looking to build its overseas book over the past couple of years to offset stalled earnings in its domestic portfolio.
The Indian insurance market was worth $7.35 billion in 2006 and grew 13% over the same period. India is one of Asia’s great untapped markets for insurers. The population of more than 1 billion has an insurance penetration of just 0.6%.