Home BusinessING writes to Irda on move to split biz
ING will sell its stake in the life insurance business by 2013 as part of its ongoing Back to Basics programme by moving towards complete separation of its banking and life insurance operations.
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ING Insurance International holds 26 per cent in the life insurance joint venture while there are other three promoters — Exide Industries (50 per cent stake) Ambuja Cements (11.5 per cent) and the Enam Group (12.5 per cent).
“A letter has been written to the Insurance Regulatory and Development Authority stating the situation. We have not yet started scouting for a strategic partner but will have one within four years,” said a senior executive at ING Life. He added the ING group had not yet appointed an investment banker.
“ING Life India remains committed to its chosen strategy of break-even by 2011-12. We do not see any change in the course of our business in the immediate term, nor will the decision have an impact on our customers, staff, distribution partners or on our shareholders,” said John Boers, chief financial officer, ING Life India. The Bangalore-based insurer is currently present in 234 cities across 265 branch offices.
The company said that while the separation would be achieved over the next four years by disinvestment of all insurance operations; for present, this would have no impact on ING’s operations in India, including its life insurance and bank operations.
“ING has a strategic 44 per cent stake in ING Vysya Bank. The Indian operations is a selective growth option for the group outside Europe for ING Retail Banking, as repeatedly emphasised by the group. This development has no impact on the Indian operations of the bank and we remain committed to expanding market share domestically,” said ING Vysya Bank CEO and MD Shailendra Bhandari.