Page 39 - Life Insurance Today December 2017

Private Life Insurance

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HDFC Bank to sell Birla HDFC Life promoters to decrease 14.92% stake in IPO
HDFC Ltd and Standard Life, the promoters of HDFC Standard Life Insurance,
Sun Life plans
plans to dilute 14.92 % equity stake in the forthcoming Rs.
HDFC Bank plans to sell Birla Sun 8,700 crore IPO of the insurance firm.
Life Insurance
(BSLI), which is HDFC should be offloading 9.52 % stake while Standard Life
will dilute 5.4 %. "The funds raised will be used by HDFC Ltd
a rival to its for its business purposes as the insurance arm has adequate
group firm capital needed for growth," HDFC chairman Deepak Parekh
HDFC Life. The
said. The IPO is offering up to 299,827,818 equity shares of the face value of
Bank is adopt- Rs. 10 each. This comprises an offer for sale of 191,246,050 equity shares by
ing an 'open
HDFC and up to 108,581,768 shares by Standard Life (Mauritius Holdings), pro-
architecture'
moters of HDFC Life.
model for insurance distribution.
Birla Sun Life has said that it expects The global coordinators and book running lead managers of the IPO are Mor-
gan Stanley India Company, HDFC Bank, Credit Suisse Securities (India), CLSA
to reap the full benefits of the re-
cent deal from the next fiscal follow- India and Nomura Financial Advisory and Securities (India).
ing integration and training of staff.
PNB signs agreement with Bank of Bahrain and Kuwait
"We have recently signed up with
PNB MetLife has signed a corporate agency agreement with Bank of Bahrain
HDFC Bank. We are right now in a
and Kuwait B.S.C (BBK) to distribute its re-
phase where we are getting people tail and group products to Bank's custom-
in place, training them, getting into ers in India.
integration of technology, process
The bancassurance tie-up forms an impor-
and products. The test phase should
tant part of PNB MetLife's growth strategy
take a couple of quarters. It is only
and the life insurer has already forged many
in the next fiscal that we will get to
such alliances including PNB, Karnataka Bank and Jammu & Kashmir Bank.
see how it works," said Pankaj
Bancassurance is an arrangement by which a bank and an insurance company
Razdan, MD & CEO, BSLI.
partner to enable the insurer sell its products to the bank's client base.
According to Razdan, the life indus- Ashish Srivastava, Managing Director and CEO, PNB MetLife India Insurance,
try is also seeing resurgence after said: "PNB MetLife has always endeavoured to be ahead of the curve in de-
demonetisation. "We are seeing a signing innovative insurance solutions for our customers and it was only natu-
structural shift. This year we have ral for us to look at a partner who shares the same ethos. We are glad to an-
seen business grow 25% on the back nounce our partnership with BBK."
of a 35% growth last year. While this Mallikarjun Kota, Country Head and Chief Executive Officer, BBK, said the bank
has been an evolution for the indus- has been operating in India for over 30 years and is growing consistently both
try, the trigger appears to have been in terms of branch presence and business through diversified product offer-
demonetisation," said Razdan. ings to the salaried class.

Life Insurance Today December 2017 39

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