Liberty Mutual Group announced that it will expand its operations in India for the first time by forming a non-life insurance company in the country with partner Dabur GI Invest Corp.

Dabur describes itself as “an Indian partnership comprised of members of the Burman family, promoters and majority shareholders of Dabur India Limited, a publicly listed firm on the Indian stock exchange which is engaged in the manufacturing and marketing of health care, personal care, food products and related businesses in India and other parts of the world.”

Liberty Mutual said the newly formed company, Dabur Liberty General Insurance Company, will provide personal and commercial insurance products, with an emphasis on personal insurance products such as auto, home and personal accident protection. Liberty Mutual added that the products will be offered though various distribution channels such as agents, banks and car dealers.

As part of a joint-venture agreement between Dabur and Liberty Mutual, Dabur will hold a 74 percent stake in the new company, and Liberty Mutual, through a subsidiary, will hold 26 percent. Liberty Mutual added that the agreement allows it to increase its stake “as changes to Indian law permit.”

John Cusolito, Liberty Mutual spokesperson, explained: “Under current law, foreign ownership of a non-life insurance company is limited to 26 percent. We anticipate taking a larger stake once Indian law changes, as it has for other industries such as banking.”

In a statement, Liberty Mutual Group Chairman, President and Chief Executive Officer Edmund F. Kelly said: “India's rapidly expanding middle class illustrated by GDP per capita growth of more than 50 percent over the past 10 years means that ever more Indians will be buying insurance to protect their property and possessions. Entering India's insurance marketplace at this exciting time offers tremendous growth opportunity for our international operations while reinforcing our position among the leading global insurance companies.”

The formation of the new company must still be approved by Indian regulators.

Special Reports /

Liberty Mutual To Expand Presence In India

Related Stories

Recommended For You