HDI-Gerling of Germany in 3-way JV for non-life

MUMBAI: Germany's HDI-Gerling International has entered into a three-way partnership with India���s Magma Fincorp and Celica Developers to set up a non-life insurance company. In terms of the agreement between the partners, the Indian partners will hold 37% each, while the German insurer will hold the maximum permissible 26%. The three partners are expected to submit an R1 application ��� the first stage in the registration process of a new company. The company will be headquartered in Kolkata and will have a paid-up capital of Rs 110 crore.

Magma Fincorp is a listed non-banking finance company based in Kolkata, which focuses on funding vehicles and agricultural machinery and loans to small and medium businesses. Magma has over 150 offices, two lakh customers and a workforce of 4,100 employees. Celica Developers is the promoter of Magma Fincorp and has agreed to bring to the joint venture any additional capital that is required if Magma is not in a position to invest due to RBI restrictions on non-banking finance companies.

HDI-Gerling International Holding AG is part of the Talanx Group, ranking as the third-biggest insurance group in Germany with gross premium income of e19 billion for the year 2008, according to a statement issued by the German insurer. HDI-Gerling International is the holding company for HDI-Gerling and HDI Insurance business internationally.

The group is present in 27 locations, with a well-established presence in Western Europe, and in the growth markets of Central and Eastern Europe and Latin America.

The joint venture agreement was signed in Kolkata, India, by Christian Hinsch, CEO of HDI-Gerling property/casualty group and member of the executive board of Talanx AG, and by Sanjay Chamria, chief executive officer of Magma Fincorp.

���Together with the well-established Magma Fincorp in rural and semi-rural areas, this creates outstanding perspectives for growth,��� Mr Sanjay Chamria said, adding, ���Because these regions have had inadequate provision of insurance products up to now.���