Global property/casualty insurer Liberty Mutual Group and its partner, Videocon Industries Ltd., the flagship company of $5 Billion Videocon Group, with diversified interest in Consumer Electronics, Household Appliances, Oil and Gas, Power Generation, Retail, DTH and Telecom businesses, announced today their mutual intent to establish a Non-Life insurance joint venture company in India to provide personal and commercial insurance products through a range of distribution channels. The two companies intend to begin the licensing application process for the new company before the end of this year.
“India’s rapidly growing economy and expanding middle class, demonstrated by per capita GDP growth of more than 150 percent over the past 10 years, means that ever more Indians will be buying insurance to protect their property and possessions,” said Edmund F. Kelly, Liberty Mutual Group’s Chairman and Chief Executive Officer. “Videocon is a superb partner and we look forward to working with them. Their understanding of the Indian marketplace and how to reach consumers is unparalleled and the perfect complement to Liberty Mutual's insurance capabilities and experience in emerging markets.”
Venugopal N. Dhoot, Chairman and Managing Director of Videocon Industries Ltd. said, “Videocon Industries Ltd. has a strong presence in Indian consumer space. Its footprint extends from the entire range of white and brown goods to mobile telecom services covering the entire geography of India. Domain expertise of Liberty Mutual Group coupled with our huge platform of brand, trade and customer relationships covering the length and breadth of the country will provide a robust business model to the new Non-Life Insurance joint venture.”
Under the proposed agreement, Liberty Mutual Group, through a subsidiary, will initially hold up to a 26 percent stake in the new company and Videocon Industries Ltd. will hold at least 74 percent. When allowed to do so under applicable Indian law, the Liberty Mutual Group subsidiary will have the option to raise its stake in the joint venture.
Upon approval by Indian regulators, the company will provide multi-line insurance underwriting capabilities to various distribution channels, with an emphasis on personal insurance products such as Motor, Health, Home and Personal Accident protection.
“India’s growth demands Liberty Mutual’s presence,” said David H. Long, Liberty Mutual Group President. “We have ambitious plans to develop a professional, service oriented general insurance business. With Videocon, we have a partner who shares our vision. Together, we will build a premiere company worthy of the Indian consumer’s trust and respect."