Mumbai: The life insurance joint venture between Bank of Baroda, Andhra Bank and UK-based Legal and General Group Plc is scheduled to commence operations by December, a senior executive of the JV said on Monday.
IndiaFirst Life Insurance Co. Ltd, the 23rd entrant in the domestic life insurance industry, has received all the regulatory approvals for starting business in India and will offer it products through at least 500 branches of the two banks together, the company’s chief executive officer P. Nandagopal said at a Mumbai press conference. .
The partnership between the three parties was signed in March 2008. Bank of Baroda will hold 44% stake in the firm, while Andhra Bank will have 30% and the rest by Legal and General. The initial paid-up capital is Rs200 crore, and which can be scaled up to Rs2,500 crore over the next decade.
The two banks will no longer sell third-party insurance products and will train their existing staff to sell IndiaFirst products. Bank of Baroda chairman and managing director M.D. Mallya said effective 1 November, the bank has ceased selling HDFC Standard Life products, while Andhra Bank chairman and managing director R.S. Reddy said his bank will severe its relationship with Life Insurance Corporation of India before the launch of IndiaFirst Insurance.