• PAGE ONE
• INDEX
• HOME

Royal Sundaram files for non-life licence

Our Bureau

NEW DELHI, Aug. 28

ROYAL Sundaram Alliance Insurance Ltd, a joint venture between UK's Royal & SunAlliance (RSA) and India's Sundaram Finance Ltd (SFL), has filed an application with the Insurance Regulatory and Development Authority (IRDA) for a licence to set up a non-li fe insurance venture.

The proposed venture would commence operations with a capital of Rs. 100 crores, which has been specified as the minimum capital under the IRDA Act, 2000.

Confirming the development, the RSA Chief Executive Officer, India, Mr. Antony Jacob, said that while the foreign partner would hold 26 per cent stake in the venture, the remaining equity would be split among SFL and its associate companies.

The SFL-RSA application is the sixth of the proposals received by the IRDA so far, which include two applications from the Reliance group. It is also the second non-life application to have been submitted to the IRDA, with the only other one coming from the Reliance group. The other applications so far with the IRDA are from joint venture companies proposed by Dabur-Allstate, Prudential-ICICI and HDFC-Standard Life.

The RSA insurance group, which is headquartered in London, is the largest composite insurer in the UK, besides being among the top five non-life insurance company globally. The company, which has operations spread around 130 countries worldwide, was crea ted in 1996 with the merger of Royal Insurance Holdings plc with SunAlliance Group plc.