The Insurance Regulatory and Development Authority has given approval to the Videocon Group’s general insurance joint venture with the US-based Liberty Mutual Group. Liberty Mutual will hold a 26 per cent stake in the JV with Videocon holding the remaining stake 74 percent.
Videocon Industries and Liberty Mutual had announced their intention to form a general insurance joint venture in November 2010.
Liberty Mutual operates in 17 countries worldwide with a mix of offerings in the insurance space ranging from auto, home and life, as well as personal liability insurance.
This is Liberty’s second foray into the Indian non-life segment. It had earlier tied up with FMCG major Dabur to form a general insurance venture in 2008. But Insurance Regulatory and Development Authority of India refused to grant them a license since Dabur also had a stake in Universal Sompo General Insurance – a joint venture between Sompo General Insurance and Allahabad Bank.
Videocon is one of the largest players in the consumer electronics and home appliance space and operates in seven key sectors such as consumer electronics, home appliances, direct-to-home TV services, mobile handsets, GSM services, oil and gas services, LCD panel manufacturing and colour picture tube glass.
Source – Business Line