Legal And General To Enter Life Insurance Market In India

Wed, 05 Mar 2008

Indian banks Bank of Baroda and Andhra Bank have teamed up with UK-based Legal and General Group in a bid to enter a joint venture into life insurance operations in India.

The three companies signed a shareholders’ agreement on Tuesday, which will see the joint venture sell a range of protection and savings products.

The new company is expected to be named ‘Baroda Legal and General’, with the company’s logo reading: ‘In partnership with Andhra Bank’ .

Chairman and Managing Director of Bank of Baroda, Anil K. Khandelwal, said the company is likely to launch operations between January and March 2009, subject to regulatory approvals, at an initial capital of Rs 200 crore (£24.9m).

"We are aiming to be among the top 3 life insurance players in the country in 5 to 7 years," said AK Khandelwal at a press conference.

Bank of Baroda will hold a 44 per cent stake in the joint venture, with Andhra Bank and Legal and General holding smaller shares of 30 per cent and 26 per cent respectively.

Rob Margetts, Chairman of Legal and General, commented: "The life insurance company will offer value-for-money products . We will offer savings products, Ulips and term products initially."

"We will employ 1000 people in India in the next 12 months, and provide the necessary actuarial, operational and technical skills," he added.

Together, Bank of Baroda and Andhra Bank have 4000 branches and around 45 million customers spread across India.
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