Societe Generale to devise new strategy for insurance sector

Undeterred by the premature end to its life insurance joint venture with Indiabulls Financial Services Ltd, French banking giant Societe Generale is still buoyant on the opportunities in the sector and plans to develop a fresh strategy.

“The Indian life insurance market is now the tenth largest in the world with significant growth perspective and therefore, remains attractive for Societe Generale Insurance,” Sandra Martyres, chief operating officer, Societe Generale India, said.

“Societe Generale Insurance will devise a fresh strategy to enter the insurance business in India, consistent with its goals and views on the success factors required in this market. It will continue to closely monitor market opportunities,” Martyres said.

However, the company has not yet initiated talks for a new partner with any Indian business group or company for the insurance foray. Earlier today, Indiabulls Financial Services informed the stock exchanges that the company and Sogecap, the life insurance subsidiary of Societe Generale, have mutually agreed not to pursue the life insurance joint venture in India.

While Indiabulls held 74 per cent stake in the joint venture, the Paris-based company held 26 per cent.

The joint venture, Indiabulls Societe Generale Life Insurance, had received the R1 licence from the Insurance Regulatory and Development Authority. R1 is a preliminary approval given by IRDA. Societe Generale also has a separate joint venture with State Bank of India (SBI) for custodial services in which it holds 35 per cent stake. SBI has the balance 65 per cent. Martyres said the custodial services JV will begin operations in January-March.