India’s largest realty firm DLF will exit from life insurance business by selling 74% stake in its joint venture DLF Pramerica Life Insurance to Dewan Housing Finance, reportedly for over Rs 350 crore.
DLF had in 2007 announced entry into the sector through a joint venture with US insurance giant Prudential Financial’s arm.
The joint venture, where the Indian realty firm held 74% in the joint venture and the rest was owned by Prudential International Insurance 26%, had reported a combined loss of over Rs 250 crore during past two fiscals.
“The company today signed definitive agreements to sell its 74 per cent stake in the life insurance joint venture DLF Pramerica Life Insurance...to Dewan Housing Finance and its group entities,” DLF said in a filing to BSE. Neither of the companies, however, disclosed the value of the deal but sources said it could be worth Rs 350-400 crore.