HDFC shortlists 3 foreign players for insurance JV

NEW DELHI: Housing lender HDFC has shortlisted three foreign companies in its partner selection process for the general insurance business and is likely to complete the exercise in the next 2-3 weeks.

"We have shortlisted three names and it will take two-three weeks to finalise the foreign partner," HDFC Executive Director Renu Sud Karnad told the media.

Without giving the specific names, she said the contenders for the 26 per cent stake in its non-life insurance business were from the US, Europe and Australia.

"We are trying to assess which one fits best," she said. It is believed that the shortlisted firms include the US-based Travelers and Australia's IAG Group. Besides, the world's second largest reinsurer Munich Re's insurance arm ERGO is also being considered.

Without confirming or denying any name, Munich Re last week said MoUs with partners (life and non-life) are close to finalisation.

The joint venture for general insurance could happen earlier than life insurance venture and the likelihood of partnering with the private sector is higher for the non-life venture, Munich Reinsurance Chairman Nikolaus von Bomhard had said.

Earlier, the US-based Chubb Corporation had the maximum permissible 26 per cent stake in HDFC's general insurance venture.

Chubb, after five years of partnership, walked out of the venture in May by surrendering 26 per cent stake to HDFC for an undisclosed amount. Following this, the venture became 100 per cent subsidiary of HDFC.

HDFC also runs a life insurance firm in joint venture with UK's Standard Life.