The $42 billion MetLife Inc aims to replicate its success story in the US in India where it today holds a 26 per cent market share. | |
| The insurance major is hoping for a breakeven by 2009, when it expects to have a five per cent marketshare. This would make the local operations a significant part of international operations, said Robert H Benmosche, chairman and chief executive officer, MetLife Inc. |
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| "Our goal is to take our strong base in the US to other parts of the world, and India is a clear focus for us," he added. |
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| This will be partly helped by MetLife's recent acquisition of Citigroup's Travellers Life and Annuity business for a consideration of $11.5 billion. |
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| MetLife India is a partnership between the Jammu & Kashmir Bank, US-headquartered MetLife, M Pallonji and Company and other investors. |
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| Benmosche was in Mumbai today to address the press, following which he met shareholders of the Indian joint venture company. |
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| In what would become a unique possibility "" once the foreign direct investment cap in the insurance sector is raised from the present 26 per cent to 49 per cent - the US shareholder MetLife would end up with majority control, unlike in the case of most other Indian private joint ventures where the Indian partner, would retain 51 per cent. |
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| "I'd like to acquire more of MetLife than look at other acquisitions in India," said Benmosche. |
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| Following the recent acquisition of Travellers Life and Annuity from Citigroup, Benmosche aims to look at how this acquisition can be translated in the Indian context. |
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| "We are waiting to see what will happen with Citigroup here, having started discussions at a global and national level," he said. With MetLife buying out Citigroup's Life and Annuity, Benmosche confirmed that Citigroup would not be a manufacturer of insurance products in India. |
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| "We will be their manufacturer," he added. Citigroup had earlier plans to enter the country in the life insurance business, but these are now understood to have stand cancelled. |
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| Benmosche said that the company is likely to bring in more guaranteed products into the country in line with the demand it sees in the US. "As long as it makes economic sense and are priced correctly, we would look at it," he said. |
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| The Irda off late is not too happy for insurance companies to offer guarantees on unit-linked products in the country, said Venkatesh Mysore, managing director, MetLife India. |
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| MetLife ranks third in the group insurance business after the state-dominant player, the Life Insurance Corporation of India (LIC) and SBI Life. |
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| "One of our key focus will be the group business in the country," said Mysore. |
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