Punjab National Bank (PNB) and MetLife India, an affiliate of MetLife Inc., announced today that PNB will be inducted as a joint venture partner in the company. The Board of PNB, in its meeting held on 28th July, accepted the offer made by MetLife India for acquiring 30% stake in the company
Punjab National Bank (PNB) and MetLife India, an affiliate of MetLife Inc., announced today that PNB will be inducted as a joint venture partner in the company. The Board of PNB, in its meeting held on 28th July, accepted the offer made by MetLife India for acquiring 30% stake in the company. The transaction is subject to approvals from IRDA, RBI and other regulatory bodies.
PNB started the process in December last year when it invited expression of interest from insurance companies across the world. The Bank received responses from 26 Indian and international companies proposing different models. After evaluation of the various models, the Bank opted to participate in a brownfield venture by acquiring stake in an existing Indian life insurance company. Accordingly, RFP was issued to 10 Indian insurance companies who had proposed this model. Based on the technical evaluations, the Bank had shortlisted 3 life insurance companies. After evaluation of the financial bids of the three shortlisted companies, the Bank accepted the offer of MetLife India.
MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 30,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country.
PNB is the largest nationalized bank having a branch network of 5,290 branches and a customer base of over 60 million. The partnership with MetLife will provide PNB, insurance expertise and bancassurance capabilities that will be an asset to the bank as it pursues its growth strategy in India and seeks to expand its leadership in the Indian financial services market. This will further strengthen the company’s position as a leader in the rapidly expanding bank distribution channel.
Following the closing of the transaction, the company will rebrand itself as PNB MetLife to leverage the strengths of the two brands in the Indian market.
On this occasion, Mr. K. R. Kamath, Chairman and Managing Director of the Bank informed that "We are happy that the process which has set a benchmark in the industry has helped us to find the best insurance partner for the Bank in MetLife. With 60% branches in the rural and semi – urban areas, PNB is uniquely positioned to take insurance to the deep pockets of India. This partnership has the potential to drive the company into the top tier of Indian life insurers and more than double its market share." Mr. Kamath also acknowledged the role of Boston Consulting Group for running the process which has been well acknowledged by the industry.
William J. Toppeta, President International of MetLife expressed his pleasure at the tie up "Given its global significance, India is a strategic focus market for MetLife. We believe that the addition of an outstanding financial institution like PNB as a shareholder and partner will greatly enhance MetLife India's ability to move into the top tier of life companies here. We value PNB and our current shareholders for their integrity, market knowledge, distribution power and financial strength. We look forward to a long and productive partnership for the mutual benefit of Indian consumers and our respective shareholders".
FOR MORE INFORMATION ON THIS PRESS RELEASE CONTACT
Mr. Balachander Sekhar. MetLIfe India Insurance Company Limited.
Email: firstname.lastname@example.org. Phone: 0124-4179000