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LIC eyes alliance with UK major

BS Banking Bureau

The Life Insurance Corporation (LIC) of India is eyeing a mega joint venture with an insurance company in London with a view to expanding its UK operations to the rest of the European Union. LIC is also eyeing a similar joint venture in the US.

The public sector insurance major's aggressiveness in expanding foreign operations stems from the suggestions of its consultant, Booz, Allen and Hamilton.

"We will restructure our London operations as the business is expanding. We are looking for a partnership with an insurance company in the UK, whereby with a licence in one country, we can operate in any part of the European Union," LIC chairman G N Bajpai said.

"We see a great potential in tapping the huge Indian population outside UK," said LIC's managing director, N C Sharma. The firm will initially tap the domestic population and this will be identified in the terms of the agreement with the British insurer, he added.

Meanwhile, it will commence its operations in Nepal, Mauritius and the UAE in the coming month. LIC has a joint venture with the Vishal Group of Nepal with a shareholding of 55 per cent in the Rs 200 million life insurance outfit.

The Mauritius operations is a 100 per cent owned subsidiary, which will cater to countries in east and South Africa, where there is a huge Indian population.

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