NU Online News Service, Nov. 4, 3:28 p.m. EDT
Liberty Mutual Group said it will partner with Videocon Industries to establish a company to provide personal and commercial insurance products in India.
Under the proposed agreement, Liberty Mutual said it will, through a subsidiary, initially hold up to a 26 percent stake in the new company and Videocon Industries Ltd. will hold at least 74 percent. When allowed to do so under applicable Indian law, Liberty Mutual said it will have the option to raise its stake in the joint venture.
Videocon, based in india, provides consumer electronics and other services.
Edmund F. Kelly, Liberty Mutual Group's chairman and chief executive officer, said, "India's rapidly growing economy and expanding middle class, demonstrated by per capita GDP growth of more than 150 percent over the past 10 years, mean that ever more Indians will be buying insurance to protect their property and possessions."
He added, "Videocon is a superb partner and we look forward to working with them. Their understanding of the Indian marketplace and how to reach consumers is unparalleled and the perfect complement to Liberty Mutual's insurance capabilities and experience in emerging markets."
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