RSA Insurance Group PLC which is headquartered in London and Sundaram Finance Ltd (SFL) announced the exit of RSA from the Indian joint venture (Royal Sundaram Alliance Insurance). Sundaram will buy back the 26% holding of RSA and continue the insurance business in India.
RSA Insurance Group operates in 28 countries and provides insurance products and services has over 17 million customers. As a part of their global strategy, RSA is exiting from this joint venture. Recently, the company exited from businesses in Singapore, Hong Kong and China as well.
The good news however is that this move doesn’t seem to affect the long-term vision of Sundaram Finance. Managing Director of SFL ,T T Srinivasaraghavan said that the exit will not be a hurdle as SFL is completely capable of managing the insurance business on it own.
This process should take two-three months once the IRDA approvals are in place. There is no word of bringing in another foreign partner from SFL, as of now.