Monday, July 9, 2007

LIC to sell policies in Saudi Arabia through JV

Mumbai: Life Insurance Corporation of India (LIC) will soon start selling insurance policies to the public in Saudi Arabia through a three-way joint venture set up for the purpose.
LIC along with general insurer New India Assurance and Saudi Arabia's Al-Hokair Group has set up Saudi India Company for Cooperative Insurance (SICCI), which recently issued an initial public offering (IPO) for 40 per cent of the shares and raised 40 million Saudi rials (about Rs46 crore).
The regulations in Saudi Arabia require new insurance companies to offer 40 per cent of the shares to locals before starting operations.
LIC expects to get an operating license by July/August end. LIC along with its subsidiary, LIC International, holds 20.4 per cent stake in SICCI, while New India Assurance has 10.6-per cent stake and Al-Hokair Group 29-per cent stake. The IPO for the 40-per cent stake was subscribed 8.5 times.
LIC is also working towards setting up representative offices in Singapore and the United States of America. In January 2007, the Insurance Regulatory Development Authority (Irda) had issued regulations for insurance companies wanting to open representativeiaison offices overseas.
LIC started its Bahrain operations in 1989. LIC (International), Bahrain operates in Bahrain, Saudi Arabia, Oman, Qatar, UAE and Kuwait, and has permission to sell insurance only to non-resident Indians.
Source: Domain-b

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