Avantha calls off life insurance venture with ERGO

JV announced in Nov 2012 stands dissolved; second-time unlucky ERGO begins hunt for new partner

Europe-based insurance company ERGO has begun scouting for a new partner for its life insurance business in this country. The Avantha Group, with which it had signed a joint venture (JV) agreement, has decided to withdraw, and the partnership stands effectively dissolved.

ERGO International and Avantha had announced the JV in 2012, to start Avantha Ergo Life Insurance, with ERGO holding 26 per cent stake. The entity had got first-stage approval from the Insurance Regulatory and Development Authority of India (Irdai) and had applied for second-stage approval.

Irdai typically has three stages of approval for starting an insurance company. R1 is an