Non-life space gets new player

NEW DELHI: The country’s booming non-life insurance segment witnessed the entry of a new player on Wednesday, with Universal Sompo General Insurance Company being formed as a joint venture between Sompo Japan Insurance and other three Indian banks — Allahabad Bank, Karnataka Bank and Indian Overseas Bank, reports Our Bureau. Dabur Investment is also a partner in the venture.

The second biggest casualty insurer of Japan will hold a 26% stake in the joint venture, its representative officer Koji Otsuka said. Dabur Investment, a subsidiary of consumer products maker Dabur India, will have 10%. Allahabad Bank will own 30% in the venture, Indian Overseas Bank will have 19% and Karnataka Bank will hold the remaining 15%.

The new company will have access to 4,000 branches of the banks concerned. It plans to tap the existing customer base of the three banks. The company is yet to complete the licensing formalities with the Insurance Regulatory Development Authority (Irda).

The total capitalisation of the company stands at Rs 200 crore. The minimum mandated under Irda requirements is Rs 100 crore for a non-life company. The total size of the general insurance market in India is around Rs 20,000 crore.