Future Generali planning to rope in a bank as partner

Future Group is planning to partner with a bank as an investor in its life insurance subsidiary; Future Generali India Life Insurance Co. Ltd. 

Future Generali is a joint venture between the India based Future Group led by Kishore Biyani, and the Italy based Generali Group. Future Generali is both in the Non-Life and Life businesses as Future Generali India Insurance Co. Ltd and Generali India Life Insurance Co. Ltd.  

The company doesn’t intent to sell any of its stakes in Future Generali India Life Insurance. The bank will be the strategic partner, providing not only funds but also its distribution channels.

Syndicate Bank and Bank of India have shown interest, and the company is in talks with Syndicate Bank. The company has also declared its intention to sell its shareholdings in Future Capital Holdings to release capital, which will be used to expand business.

According to a Future Group official, “The bank would have a stake of around 20 per cent in the life insurance company to begin with. As fresh infusions of equity are made, our stake in the venture will keep falling, but we do not plan to sell any of our shares in the venture.”

Aviva Life Insurance front-runner for tying up with Syndicate Bank

Syndicate Bank is likely to choose Aviva Life Insurance Company for its upcoming insurance joint venture. As per industry sources, the Syndicate Bank in all probability is likely to acquire 26% stake in Aviva Life. The deal is still has to be finalized and Syndicate Bank has yet to decide on the insurance partner.

A senior bank official said, "We have just finished receiving the financial bids and would shortlist three-four players on the basis of financial bids. Then, we would take the final call." said. Nevertheless, according to inside sources, Aviva Life is much ahead of other companies as it is offering better deal.

Syndicate Bank had shortlisted Birla Sun Life, Aviva Life, Max New York Life HDFC Life, Metlife India Life, and three new upcoming companies Sumitomo Life Insurance Company, Avantha Ergo and Mitsui Sumitomo Insurance Company Limited.