DELHI: Realty major DLF today exited the life insurance business by selling 74 per cent stake in its joint venture DLFPramerica Life Insurance to Dewan Housing Finance for an undisclosed amount.
"...the company today signed definitive agreements to sell its 74 per cent stake in the life insurance joint venture DLF Pramerica Life Insurance...to Dewan Housing Finance and its group entities," DLF said in a filing to BSE.
DLF Pramerica Life Insurance, which is a 74:26 joint venture between DLF and Prudential International Insurance, had booked a loss of Rs 132.4 crore in 2012-13 as against loss Rs 128.3 crore in in the previous fiscal.
Prudential International Insurance is a subsidiary of Prudential Financial of USA.
"These agreements are subject to regulatory approvals. The transaction consideration shall be disclosed post receipt of all such approvals," it said.
According to sources, the deal with DHFL is worth around Rs 350-400 crore.
"This transaction is in line with our ongoing strategy to divest non-core businesses or assets. We have had a very cordial relationship with Prudential and wish them the best in their new partnership with DHFL," DLF Group CFO Ashok Tyagi said in a statement.
During 2012-13, the company had earned first premium income of Rs 138.64 crore against Rs 102.83 crore in the previous fiscal, an increase of 35 per cent.
At the end of 2012-13, the joint venture completed about four-and-a-half years of operations and had 55 branches in India and a team of 5,487 individual agents.
The company has issued 1,02,418 insurance policies in 2012-13 as against 69,926 in previous year.
The share capital of insurer was Rs 320 crore at the end of March 2013.
Last year, US-based insurer New York Life had exited India by selling its 26 per cent stake in its joint venture company to Japan's Mitsui Sumitomo Insurance Company.
Indian insurance sector has 42 private players in life and general insurance business sharing about 30 per cent of the market share in life insurance and 41 per cent of the market share in general insurance sector.