IRDA okays PNB-Met Life Insurance deal

The Insurance Regulatory and Development Authority (IRDA) has sanctioned the deal between state-run bank Punjab National Bank (PNB) and US-based insurer Met Life. PNB has purchased 30% stake in Met Life India Insurance Company.

The regulator, in its board meeting, which was held on 31^st August, 2012, approved the initiation of Punjab National Bank as a shareholder of Met Life India Insurance Company with 30% stake, an IRDA statement said.

Furthermore, the statement said, “The Board approved the proposal ... subject to certain conditions inter alia on appointment of Directors on the Board of the insurer by PNB, reduction in the equity stake by some of the existing shareholder and maintaining solvency margin ...”

Punjab National Bank had announced its 30% stake purchase in Met Life India Insurance Company last year; although, the company did not reveal the deal amount. As per the terms of deal, MetLife will have an arrangement with the existing shareholders and will raise its stake to 26 per cent within 120 days of operationalisation of the deal. 

Apart from PNB, the other major shareholders in the company are Jammu & Kashmir Bank, Shapoorji Pallonji and Met Life. 

MetLife is the holding corporation for the Metropolitan Life Insurance Company is among the largest global providers of insurance, annuities, and employee benefit programmes, with 90 million customers in over 60 countries.