Insurance FDI dilution not to help Sompo GI | india | Hindustan Times
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Insurance FDI dilution not to help Sompo GI

At a time when promoters of insurance companies are waiting for the enactment of the Insurance Bill that would relax Foreign Direct Investment ceiling from the present 26 per cent to 49 per cent, promoters of Universal Sompo General Insurance are simply not interested.

india Updated: Jun 12, 2009 23:44 IST
Falaknaaz Syed

At a time when promoters of insurance companies are waiting for the enactment of the Insurance Bill that would relax Foreign Direct Investment (FDI) ceiling from the present 26 per cent to 49 per cent, promoters of Universal Sompo General Insurance are simply not interested.

The reason: as per the shareholding agreement, the promoters of Universal Sompo cannot dilute their stakes in the company for 5 years of operations since its launch (till November 2012). The Company received license and certificate of Registration in November 2007.

“None of the promoters can dilute their shareholding till 2012 as there is a lock-in of 5 years. So even if FDI laws are relaxed none of the shareholders can dilute stake. After 5 years, a fresh agreement will be signed.” ON Singh, chairman, Universal Sompo General Insurance, said.

The stakeholders of Universal Sompo General Insurance are Allahabad Bank (30 %), Indian Overseas Bank (19%), Karnataka Bank (15 %), Dabur Investment Corporation (10%) and Sompo Japan Insurance Inc (26 %).