Real estate major DLF has teamed up with US-based Prudential
Financial Inc (PFI) to enter life insurance business.
The two partners will invest Rs1,000 crore each over
the next 10 years in the joint venture -- DLF Pramerica
Life Insurance Company Ltd (DLF Pramerica).
Pramerica is a brand name used in select countries by
Prudential Financial, said Kapil Mehta, Prudential Financial's
chief representative in India.
Mehta has been earlier associated with MaxLife.
Prudential will have 26-per cent stake and the remaining
74-per cent will be held by DLF group," he said.
The joint venture will have an initial paid-up capital
of Rs100 crore, including Rs26 crore by Prudentia, Mehta
said. The two partners plan to scale up investment to
Rs1,000 crore ($250 million) over the next 10 years,
said the company is applying for a licence from the
Insurance Regulatory and Development Authority (IRDA),
and expects to launch operations early next year. Prudential
is also in talks with several banks and non-banking
finance companies to form additional channels of distribution,
Prudential would take care of the operations, while
both the partners would have representatives on the
board, DLF sources said.