DLF to invest Rs1,000 crore in life insurance venture with Prudential
06 March 2007
Real estate major DLF has teamed up with US-based Prudential
Financial Inc (PFI) to enter life insurance business.
The two partners will invest Rs1,000 crore each over
the next 10 years in the joint venture -- DLF Pramerica
Life Insurance Company Ltd (DLF Pramerica).
Pramerica is a brand name used in select countries by Prudential Financial, said Kapil Mehta, Prudential Financial's chief representative in India.
Mehta has been earlier associated with MaxLife.
Prudential will have 26-per cent stake and the remaining 74-per cent will be held by DLF group," he said.
The joint venture will have an initial paid-up capital of Rs100 crore, including Rs26 crore by Prudentia, Mehta said. The two partners plan to scale up investment to Rs1,000 crore ($250 million) over the next 10 years, he said.
He said the company is applying for a licence from the Insurance Regulatory and Development Authority (IRDA), and expects to launch operations early next year. Prudential is also in talks with several banks and non-banking finance companies to form additional channels of distribution, he added.
Prudential would take care of the operations, while both the partners would have representatives on the board, DLF sources said.