Australian insurance major enters India

Australian insurance major -- the QBE Insurance Group -- has made an entry into Indias growing general insurance market by signing a joint venture agreement with diversified conglomerate Rajan Raheja Group.

Sydney, July 20 : Australian insurance major -- the QBE Insurance Group -- has made an entry into India's growing general insurance market by signing a joint venture agreement with diversified conglomerate Rajan Raheja Group.

According to the Sydney Morning Herald, QBE will invest around seven million dollars initially for a 26 per cent stake in the JV, to operate in the Indian general insurance business.

QBE will also nominate a managing director for the joint venture and provide technical expertise. It has the option to increase its equity to 50 per cent when Indian legislation allows.

QBE CEO Frank O'Halloran said the group is excited about the opportunity to work in India 's rapidly growing general insurance market.

"We are delighted to partner with the Rajan Raheja Group which has extensive interests in India and a track record of successful joint ventures with foreign partners," O'Halloran said.

The agreement and licensing of the general insurance company are subject to approval by the Insurance Regulatory and Development Authority of India (IRDA) and other applicable approvals.

Subject to IRDA approval, the joint venture company expects to begin trading in early 2008.

Rahan Raheja was also pleased to partner QBE in India .

"We believe the JV Company has excellent prospects, given QBE's track record in general insurance and RRG's extensive interests in India," a company release said.

ANI