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May 22, 2001
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Money > Business Headlines > Report May 22, 2001 |
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LIC zeroes in on eight African states for joint venturesBS Bureau The Life Insurance Corporation has identified eight countries in the African continent where it intends to commence business on a joint venture deal with the local parties. The insurer is also looking at opportunities for striking joint venture deals in developed countries. It is also in its final stage of negotiation for a joint venture deal at Oman. "This will be a separate company with LIC as the majority stake holder, according to G N Bajpai, chairman. "We will have the gulf countries adequately covered with our company in Oman in place", said Bajpai. LIC's deal in Nepal has also reached a final stage where the company has tied up with the Nepal based Vishal group. The facility at Nepal is a 55:45 joint venture, where majority stake lies with LIC. Meanwhile, LIC will make investments of Rs 500 billion in the current year. Bajpai said it will invest 50 per cent of the funds in government securities of the central as well as the state government. Although the Insurance and Regulatory Development authority requires LIC invest 15 per cent of its funds in infrastructure, Bajpai intends to invest 25 per cent of the funds in housing, power, infrastructure and airways. Of the remaining 25 per cent, five per cent will go into real assets of policy-holders in the form of housing and other types of loans. The rest, 20 per cent will be invested in select corporate clients on their merit of repayment. The company has already invested Rs 1300 billion in the current Five-year Plan period and its balance sheet size has grown to Rs 1950 billion in 2000-01. Meanwhile, LIC added 20 million new policies in the last fiscal and it expects to grow at the rate of 18 per cent in the current year. The company as a whole is growing at compounded annual growth rate of 20.6 per cent. LIC is also looking for a joint venture partner in UK. "Our branch at UK is not doing very well and we intend to do a major restructuring there", explained Bajpai. "We intend to complete the joint venture with a majority stake and its restructuring in about six months time", he added. At present the branch is marketing LIC's present line of products, plans are to introduce a new series of products for the branch with focus on service management. Powered by YOU MAY ALSO WANT TO READ:
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