Liberty Mutual and its partner Dabur GI Invest Corp plan to form a non-life insurance company in India
Liberty Mutual Group announced today that it and its partner Dabur GI Invest Corp plan 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.
They will begin the licensing application process for the new company before the end of the second quarter this year.
“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,” said Edmund Kelly, Liberty Mutual Group’s chairman, president and chief executive officer.
“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.”
Liberty Mutual Group and Dabur GI Invest Corp 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 percent.
The agreement allows Liberty Mutual Group to increase its stake as changes to Indian law permit.
Upon approval by Indian regulators, the new entity will operate under the name Dabur Liberty General Insurance Company. The company will provide multi-line insurance underwriting capabilities to various distribution channels, with an emphasis on personal insurance products such as car, home and personal accident protection.
“With India’s booming economy, our objective is to quickly become a top-tier insurer there as we have done in other countries around the globe,” said Thomas Ramey, chairman and president of Liberty International.
“India offers us a deep pool of talented insurance professionals as well as strong and efficient distribution partners. Our new operations will be an important piece of our continuing growth globally.”
Liberty Mutual Group’s International business, which has a meaningful presence in 24 countries, reported 2007 revenue of approximately $6.1bn. Overall, the Liberty Mutual Group reported annual consolidated revenue of $25.9bn for 2007.