Indian Insurance cos to launch services in Saudi

DUBAI: Two Indian insurance companies -- Life Insurance Corporation of India (LIC) and New India Assurance have entered into a contract with Saudi Arabia's Al Hokair Group to make their services available in the kingdom. Saudi India Company for Cooperative Insurance (SICCI), formed out of the venture, has recently issued an initial public offering (IPO) for 40 per cent of the shares and raised SR 40 million as per Saudi regulations that require new insurance companies to offer 40 per cent of the shares to locals before starting operations. 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 in the company and Al Hokair Group holds 29 per cent stake. "The Saudi India Company for Cooperative Insurance is a composite insurance company that will sell both life and non-life products. The IPO was very well received. The matter is now with the ministry of commerce of Saudi Arabia and by July or August end we hope to get the license as it is now only a procedural formality," a senior LIC official said. In November last year, LIC (International) BSC (C), Bahrain - a subsidiary of Life Insurance Corporation of India in Bahrain - got the permission to sell insurance policies to the public in Bahrain from the Central Bank of Bahrain. 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:Economic Times