MetLife International to hike stake in Indian venture to 49%

NEW DELHI: American insurer MetLife is keen on raising stake in its Indian venture to up to 49 per cent as and when the government revises the cap on foreign holding in the sector.

"If the Indian government decides to raise the cap on foreign investment in insurance companies, MetLife International would definitely invest more in India. India is a growth engine for MetLife in the future," said MetLife India Insurance Company Managing Director Rajesh Relan.

Under the present regulation, a foreign firm is allowed to have 26 per cent stake in an insurance venture.

MetLife India Insurance Company incorporated in 2001 is a joint venture between MetLife Inc, Jammu and Kashmir Bank, M. Pallonji and Co. Pvt Ltd and other private investors.

A bill to amend Insurance Laws to raise the FDI limit to 49 per cent from existing 26 per cent is pending in Rajya Sabha and the issue would be taken up by the Upper House after receipt of the report of the Standing Committee.

"We would expect the new government at the Centre to continue with the financial reforms to further liberalise the insurance sector. The government should push forward the Insurance Amendment Bill as it will provide the much needed impetus to the sector," he said.