LIC exploring JV in U.K.

NEW DELHI, MAY 11. Unfazed by emerging competition in the domestic arena, Life Insurance Corporation (LIC) is on the verge of forging a mega joint venture with an insurance company in the U.K. and exploring similar tie-ups in the U.S. as part of its overseas expansion plan.

``We are exploring a joint venture in the U.K. We will have majority stake in the venture with a foreign life insurance company," LIC chairman, Mr. G. N. Bajpai, told PTI here.

Without naming the company, he said LIC would benefit from the tie-up with foreign company and re-establish its presence in the U.K.

The move is part of the strategy to restructure its overseas operations in the U.K., Mr. Bajpai said. ``If we start a company in the U.K., the company would be able to tap the entire European Union," he said.

LIC is now operating in the U.K. on its own and posting 10-20 per cent growth in business. Mr. Bajpai also said LIC was exploring possibilities of entering the U.S. market as well.

LIC has recently obtained licence and got registered in Mauritius under the name of LIC Mauritius Offshore. ``Through our venture in Mauritius, we will tap the African market," the LIC chief said.

In Asia, the company recently tied up with Vishal Group of Nepal with a majority 55 per cent stake. ``We will start our operations in Nepal by June-end," Mr. Bajpai said. The company has an insurance licence for operations in Sri Lanka too. LIC has also obtained approval for selling policies to Indians in United Arab Emirates (UAE) through its subsidiary LIC International EC (Bahrain), he said.

The insurance major operates in West Asian countries of Saudi Arabia, Qatar and Kuwait through its Bahrain arm where LIC holds 98 per cent stake. At present, LIC has assets at around Rs. 200,000 crores and posted a growth rate of over 40 per cent in the last fiscal.

- PTI

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