Metlife partners Pallonji Mistry for insurance venture
New Delhi: Construction magnate, Pallonji Mistry, has tied up with J&K Bank and other strategic investors to bring in US-based insurance major, Metlife, for a joint venture into the insurance sector.

In a unique holding pattern Metlife will get a 26 per cent stake in the venture and will be the single largest shareholder with management control, while the Indian partners will pick up a maximum of 25 per cent stake. While the agreement between the partners is expected to be signed shortly, Arthur Andersen is said to be preparing the business plan for the venture.

Though a business plan has been prepared by Metlife, one of the things that the global consultant has been asked to do is look at the launch strategy and the phases in which products will be launched.

Although the initial equity of the life insurance venture is expected to be about Rs 100 crore as prescribed by the IRDA, the partners expect to pump in about Rs 300 crore in the venture over the next two-three years.
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