ING, the Dutch financial services group departed the insurance business in India by selling off 26 percent stake of ING Vysya Life Insurance to the Exide Industries, its joint-venture partner. The deal was worth 1100 crore Rupees. Exide Industries, on the other hand is now searching for the foreign insurer who would buy this 26 percent stake.
As of now, the Exide Industries held 50 percent stake in ING Vysya Life Insurance Company and with the present deal, Exide Industries holds 74 percent overall stake in the company. Rest of the 24 percent is held by two promoters Hemendra Kothari Group and Enam Group.
The deal between the two is depending on the regulatory approvals. However, the transaction would most probably close by June 2013.
However, ING announced that it will retain the presence in the banking sector in India.
It is important to note that ING is the 3rd insurance company to leave India. The first insurer to exit from India was Australian insurer AMP with its joint venture with Sanmar that sold the stake to Reliance Life Insurance. The second insurer to leave from India was American insurer Chubb with the joint venture with HDFC.
Because of the financial crisis across the globe, a lot of insurers changed their expansion plans. The active insurers in India at present are Samsung Life of Canada and North American insurer Manulife.