Liberty Videocon General Insurance Co. Ltd, a joint venture between Liberty Mutual Insurance Group and Videocon Industries Ltd., will start its Indian operations after being granted a license by regulators.
The insurance partnership, which is based in Mumbai, will provide multiline insurance underwriting capabilities with a focus on personal lines, a company statement said.
Liberty Chief Executive Officer and President David H. Long in a statement said India's economy is rapidly growing, leading to more personal income, which the company hopes Indians spend on insuring their possessions and property.
Non-life insurance premiums in India increased by 21.8% in the year through March 2011, as the four major state-run companies continued to dominate the market with a combined share of about 60%, more than 10 years after it was opened to private competition, according to an A.M. Best Co. special report.
Videocon Industries Ltd. is the flagship company of Videocon Group, which has diversified interests including electronics, household appliances, power generation and telecom businesses.
"Videocon Group has a strong presence in the Indian consumer space ... covering the entire geography of India," Videocon Group Chairman Venugopal N. Dhoot said in a written statement. "Domain expertise of Liberty Mutual Insurance Group coupled with our huge platform ... should provide a robust business model for Liberty Videocon General Insurance's business."
Liberty has been expanding its international operation in recent years. In March, the Boston-based company said it would be expanding into the Russian market with the purchase of KIT Finance Insurance (Best's News Service, March 30, 2012). The company said about 26% of its 2011 net written premium came from international operations.
Most Liberty companies currently have a Best's Financial Strength Rating of A (Excellent).