Leading public sector bank Punjab National Bank (PNB) and US-based MetLife India, on Monday, signed a deal wherein the former picked up 30% stake in the insurance company for an undisclosed amount. The new insurance venture has been re-branded as PNB MetLife India Insurance Company Ltd. Finance Minister P Chidambaram, on the occasion of brand launching, said, “For a successful life insurance business, it is important to bring simple products to market that are easy to understand. Also, insurance companies should make sure that there is no mis-selling at any level.” With the change in shareholding pattern, Jammu and Kashmir Bank will hold 5 per cent, Shapoorji Pallonji 17.15 %, Elpro Group 21.46%, while MetLife would continue to hold 26 % cent stake in the joint venture. “Partnering with MetLife will give us access to global products and the risk management expertise of MetLife. The acquisition would make PNB Metlife ninth largest insurance company in India in terms of new business premium,” said K R Kamath, Chairman & Managing Director, Punjab National Bank. Apart from PNB, MetLife India has two other banks, Karnataka Bank and Jammu and Kashmir Bank as their distribution partners. “At present, around 60 per cent of business is coming from bank channels. We expect it to go up over the next few years. Also, it would be significant as the volume of business grows,” said Rajesh Relan, MD and country manager of PNB MetLife India Insurance.
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