Liberty Mutual Group and its partner Dabur GI Invest are planning to form a non-life insurance company in India to provide personal and commercial insurance products through a range of distribution channels such as agents, banks and car dealers.
Liberty Mutual Group and Dabur GI Invest will begin the licensing application process for the new company before the end of the second quarter of 2008.
Liberty Mutual Group and Dabur GI Invest have signed a joint-venture agreement. Under the agreement, Liberty Mutual Group, through a subsidiary, will initially hold a 26% stake in the new company and Dabur will hold 74%. The agreement allows Liberty Mutual Group to increase its stake as changes to Indian law permit.
Edmund Kelly, chairman, president and CEO of Liberty Mutual Group, said: India’s rapidly expanding middle class illustrated by GDP per capita growth of more than 50% over the past 10 years means that ever more Indians will be buying insurance to protect their property and possessions.
Entering India’s insurance marketplace at this exciting time offers tremendous growth opportunity for our international operations while reinforcing our position among the leading global insurance companies.