Rajan Raheja, Australia’s QBE setting up insurance co

Mumbai, Jul 19 The Rajan Raheja Group (RRG) and the Australian QBE Insurance Group (QBE) have signed a joint venture agreement to establish a general insurance company in India.

QBE will hold a 26 per cent equity stake in the joint venture company, while Prism Cement Ltd, an RRG company, will hold the remaining 74 per cent stake.

QBE will leverage its expertise in technical insurance functions as well as process and systems.

RRG will assist in distribution and other areas through its knowledge of the Indian market, said a press release.

QBE is Australia’s largest international general insurance and reinsurance group. It has offices in 45 countries and is listed on the Australian Stock Exchange with a market capitalisation of approximately $23 billion.

Lineage

The company traces its origins back to North Queensland Insurance Company Ltd, founded in Australia in 1886.

Interestingly, its antecedent companies had insurance operations in India for close to 50 years until the sector was nationalised in 1972.

The Rajan Raheja Group has interests in a range of industries including cement, automotive and industrial batteries, real estate development, ceramic tiles, ready-mixed concrete, life insurance, asset management, retailing, cable television, publishing, petrochemicals and software.

“This entry into the general insurance market in India is part of QBE’s ongoing strategy of product and geographic diversification and strengthens RRG’s interest in the financial services sector, which currently includes shareholdings in ING Vysya Life Insurance and ING Mutual Fund,” said the release.

The licensing of the company is subject to approval by the Insurance Regulatory and Development Authority and other applicable approvals.

According to the release, Mr Frank O’Halloran, QBE’s Group Chief Executive Officer, said: “We are delighted to partner with the Rajan Raheja Group which has extensive interests in India and a track record of successful joint ventures with foreign partners.”

Source: The Hindu Business Line