PNB to SELL full stake in Canara HSBC OBC Life Insurance, more similar developments on the cards - Good news or bad news? Check details
PNB also has a hold of 23 per cent in PNB Metlife, and the valuation of the insurance company is estimated at Rs 7,000 crore
Major developments are happening in the insurance sector. Last week, HDFC LIFE has acquired Exide Life Insurance. Similarly, more actions are expected to take place in the insurance space in the coming days. Special Correspondent Anurag Shah shares it all.
Shah said that Punjab National Bank's life insurance company Canara HSBC OBC Life Insurance, where PNB is the promoter after the amalgamation of Oriental Insurance. PNB is now looking to sell 23 per cent stake in Canara HSBC OBC Life Insurance.
The insurance company is now in talks to appoint advisors for the same. PNB is planning to sell 23 per cent stake of Canara HSBC OBC Life Insurance. This is a big development because most of the banks have been amalgamated with the bigger banks. There is an IRDA rule that if a company is a promoter of any two companies, then it can't hold more than 10 per cent stakes, Shah added.
PNB also has a hold of 23 per cent in PNB Metlife, and the valuation of the insurance company is estimated at Rs 7,000 crore, he added.
In the coming days, we can expect more such deals. Bank of India may exit from its subsidiary insurance company. Similarly, the Union Bank of India is also likely to exit. These are bigger developments expected in the insurance companies, Shah asserted.
Shah mentioned that the valuation can be estimated at Rs 6,500-7,000 crore. PNB is expected to get Rs 1,500-1,700 crore from the deal. Other life insurance companies will also witness this impact. The Exide-HSBC Life Insurance deal had a major impact on other listed insurance companies. Their valuations also started swelling after the Exide-HSBC Life Insurance deal.
In the coming days, after this deal, other major deals too are expected in the life insurance space. In the insurance sector, the way FDI has been increased to 74 per cent, many foreign players are queuing up to up their ante in the insurance companies. In the coming days or months, the insurance sector will be buzzed with such activities.
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