DLF Pramerica Life Insurance Company, an arm of real estate major DLF India headed by KP Singh, is scouting for equity partners. The insurance company is keen to rope in a national bank as an equity partner, apart from offering a distribution tie-up.
“We are evaluating opportunities for a long-term distribution tie-up. I cannot disclose more at this stage,” said Pavan Dhamija, managing director and chief executive officer, DLF Pramerica Life Insurance.
DLF Pramerica Life Insurance is not the first insurance company that wants to divest stakes to mop up fresh equity, expand footprint and increase market share. In addition, DLF Pramerica Life Insurance is not the first insurance company that prefers banks as its equity partner that can also take up distribution over a long term.
Last year, Max New York Life Insurance sold 4 per cent stake to Axis Bank for an undisclosed sum. Axis Bank accounts for about 30 per cent of new sales. Recently, MetLife India Insurance sold 30 per cent stake to Punjab National Bank.
Even as DLF Pramerica scouts for partners, it has signed a pact with Mapusa Urban Cooperative Bank based in Goa for distribution of its products.
While the insurer is busy negotiating deals for equity–distribution partnership with a bank having a national presence, it is not very keen on online sales. DLF Pramerica is joint venture between DLF India and Prudential International Insurance holding 74 per cent and 26 per cent stakes, respectively.
The insurer proposes to add more products. At present, the insurer provides around 12 life insurance products, out of which three are unit-linked plans. “We plan to expand our product offering in the health and pension space. As per our analysis, there is a lot of scope and unmatched demand in these segments,” added Dhamija.
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