South Korea’s largest insurance company,Samsung Life Insurance is in talks with DLF -Pramerica to buy Pramerica’s 26% stake in the insurance joint venture to enter India. Even after the exit of ING from Indian insurance sector by selling off its 26% stake in joint venture ING Vysya Life Insurance, several foreign players are eying to enter India.
Along with DLF merica, Samsung Life is also in talks with joint venture partners such as Bharti Axa to acquire the 26 % stake owned by Axa in the Joint Venture.
However, Samsung Life Insurance company has not yet begun any activities in its Mumbai office. No company spokesperson was available, neither in India nor its headquarters in Seoul, South Korea to comment on the matter.
Samsung Life, with an underwritten premium (excluding corporate pension) of 12.05 trillion KRW-South Korean Won (approximately Rs 58,000 crore) during the six months ended November 2012, has strong presence across Asia, excluding the Indian market. Samsung has registered a 25.4 % growth in six months, compared to the same period in 2011.
DLF-Pramerica is a 74:26 joint venture between DLF and American insurer Prudential International Insurance Holdings, a wholly-owned subsidiary of Prudential Financial. Pramerica is the trade name used by Prudential Financial. When contacted, the company declined to comment on the same.
According to an insurance industry expert, prominent insurance players from South Korea, Japan and other Asian nations are actively looking to expand their presence in India. At a time when some partners in JV insurance firms are looking to exit, this means positive news for these foreign players and consumers as a whole.
Asian insurance giants such as Nippon Life and Mitsui Sumitomo have already set up presence in India through buyouts in joint ventures Reliance Life and Max New York Life Insurance respectively.