Travelers may buy into HDFC Chubb

MUMBAI: A high-level team from US insurer Travelers is in town to finalise a joint venture partner for non-life insurance. According to sources, the American insurer is in talks with HDFC to buy a 26% stake in HDFC Chubb General Insurance, following the buyout of Chubb’s stake by HDFC.

Travelers was spun off as an independent non-life insurer from Citigroup, which currently holds around 12% in HDFC. On Wednesday, HDFC chairman Deepak Parekh said that he expected to receive a premium for the 26% stake in HDFC Chubb General Insurance. “The partner will get the advantage of the HDFC brand, an existing business and infrastructure. So we do expect a premium for our stake,”

Mr Parekh added. HDFC has been allowed to use the HDFC Chubb name for two months. The corporation said that it expected to have a partner in place before the renaming. At present, Suresh Menon, general manager, Mumbai region, HDFC, has been appointed to the non-life insurance venture.

The former CEO Shrirang Samant, a Chubb representatives has put in his papers, and is understood to have joined Lloyds of UK.