Country's largest real estate firm by market
capitalisation, DLF Limited has completed the sale of its 74 percent stake sale
in the insurance joint venture DLF Pramerica Life Insurance Company Limited to
Dewan Housing Finance Corporation Limited (DHFL) and its group entities for
about Rs 250-300 cr.
DLF had announced to sell its entire 74 percent stake in the JV in July this year. DLF in joint venture with US-based financial services company Prudential Financial Inc's subsidiary Prudential International Insurance Holdings Limited had started operation in September 2008.
Post transaction, the Mumbai-based DHFL, along with its promoters' entities, has acquired DLF's 74% stake in DLF Pramerica Life Insurance Company Ltd. In accordance with National Housing Bank requirements, DHFL has picked 50 percent, while, the two other promoters have acquired 12 percent each, DHFL said in a statement.
The newly formed joint venture company will be renamed to DHFL Pramerica Life Insurance Company Limited, subject to regulatory approval.
DHFL and Prudential Financial Inc said that they have closed their earlier announced joint venture transaction, following regulatory approval, to provide life insurance products to customers in India.
DLF has been selling its non-core businesses and assets such as hotels, insurance venture, plots and wind mills to reduce debt and focus on its core real estate business. It has raised about Rs 10,000 cr in last three years through divestment of its non-core assets.
During last two fiscal years, the insurance joint venture had registered a combined loss of over Rs 250 cr. According to the sources, with the exit from insurance business, DLF would not incur an annual loss of about Rs 100 cr.
During fiscal year 2012-13, DLF Pramerica Life had garnered first premium income of Rs 138.64 cr, a 35 percent increase over Rs 102.83 cr in the fiscal year 2011-12. The company issued 1,02,418 insurance policies in FY 2012-13 as against 69,926 in last fiscal. Company's share capital stood at Rs 320 cr at the end of FY 2012-13.
DLF had announced to sell its entire 74 percent stake in the JV in July this year. DLF in joint venture with US-based financial services company Prudential Financial Inc's subsidiary Prudential International Insurance Holdings Limited had started operation in September 2008.
Post transaction, the Mumbai-based DHFL, along with its promoters' entities, has acquired DLF's 74% stake in DLF Pramerica Life Insurance Company Ltd. In accordance with National Housing Bank requirements, DHFL has picked 50 percent, while, the two other promoters have acquired 12 percent each, DHFL said in a statement.
The newly formed joint venture company will be renamed to DHFL Pramerica Life Insurance Company Limited, subject to regulatory approval.
DHFL and Prudential Financial Inc said that they have closed their earlier announced joint venture transaction, following regulatory approval, to provide life insurance products to customers in India.
DLF has been selling its non-core businesses and assets such as hotels, insurance venture, plots and wind mills to reduce debt and focus on its core real estate business. It has raised about Rs 10,000 cr in last three years through divestment of its non-core assets.
During last two fiscal years, the insurance joint venture had registered a combined loss of over Rs 250 cr. According to the sources, with the exit from insurance business, DLF would not incur an annual loss of about Rs 100 cr.
During fiscal year 2012-13, DLF Pramerica Life had garnered first premium income of Rs 138.64 cr, a 35 percent increase over Rs 102.83 cr in the fiscal year 2011-12. The company issued 1,02,418 insurance policies in FY 2012-13 as against 69,926 in last fiscal. Company's share capital stood at Rs 320 cr at the end of FY 2012-13.
Source: http://www.insuringindia.com
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