Punjab National Bank (PNB) has decided to venture into the life insurance space through a corporate agency tie-up with an Indian life insurance company.
Last year, the bank decided to part ways with its foreign partners Principal and UK paints. In January 2011, PNB announced its decision to buy 26% stakes in Principal Financial Group of Mauritius and 32% stakes in UK (Berger) paints in Principal PNB Life Insurance Company Ltd.
PNB decided to make a fresh foray into the insurance space and accordingly invited expressions of interest (EOI) from foreign as well as Indian companies. However, the bank has revised its decision of venturing with a foreign partner. They have now issued requests for proposals (RFPs) to life insurance companies in India. These companies include companies like Met Life, Bharti AXA, Aegon Religare, Future Generali, HDFC Life, Max New York Life, DLF Pramerica, Bharti Sun Life, and AVIVA.
K R Kamath, Chairman, and Managing Director, PNB, said that after weighing various options, they have finally arrived at this model of venturing through a corporate agency tie-up along with equity participation with an existing Indian life insurance company.
The bank will file a joint application with the IRDA after finalizing the life insurance company.
