PNB shortlists 10 firms for life insurance JV

State-owned Punjab National Bank (PNB) today said it proposes to buy stake in an existing life insurance company and has shortlisted 10 companies, including Reliance Life and Bharti AXA, for the strategic partnership.

The bank had invited expression of interest from intending insurance companies for strategic partnership in insurance business with the bank in December last year.

PNB said it has decided to participate in the life insurance venture through "a corporate agency tie-up along with equity participation in an existing Indian life insurance company".

In a statement, the public sector lender said, "RFPs (request for proposals) have been issued to ten insurance companies...."

The companies which had expressed interest in the proposal include Reliance Life and Bharti AXA, Birla Sun Life, HDFC Life, Max New York Life and Met Life, the bank said.

These companies had filed various models of business with the lender.

"The bank will finalise the partner for life insurance business based on the evaluation of the proposals submitted by these insurance companies," PNB said.

Last year, the bank decided to part ways with two of its partners in a planned life insurance joint venture. PNB bought the entire 26% stake held by Principal Financial Group and the 32% participating interest of domestic firm UK (Berger) Paints in Principal PNB Life Insurance Company Ltd.

PNB's stake in the proposed joint venture was 30%, while that of Vijaya Bank was 12%.