Bank of India sells 18% stake in life insurance venture Star Union Dai-Ichi

MUMBAI: PSU lender Bank of India has sold 18% stake in its life insurance venture Star Union Dai-Ichi Life Insurance to Japan’s largest life insurer Dai-Ichi, the lender informed in an exchange filing. The value of the transaction was not revealed by the state-run lender.

Just after its quarter four results were announced Bank of India chief M Rego had announced the PSU lenders intent to sell its non-core assets, including stake in its subsidiaries, with a target to raise Rs 1,000 crore.

The shareholding of Dai-Ichi in the Indian life insurance venture will now increase from 26% to 44% while Bank of India’s shareholding will decrease from 30% to 48%. Union Bank will continue to hold 26%.

This move comes after the new insurance rules allow foreign partners in insurance companies in India to increase their stake to 49%. Earlier, they were allowed to hold up to 26% stake in Indian insurance companies. However, the act dictates that all Indian insurers must have full Indian management and control.