Indian promoters are seen to be gaining more stronghold in insurance ventures in the country.
On the one hand, while Indian management control has ensured that all decisions, appointments can be made only with majority nod of Indian shareholders, possible exit of foreign partners in companies like Bajaj Allianz, as news reports suggest, will further add up to Indian partner control.
Bajaj Allianz Life and General Insurance has Allianz as a foreign joint venture partner with 26 per cent stake.
While other foreign partners in insurance companies have hiked their stake to 49 per cent which is the maximum permissible, Allianz had been engaged in discussions over this.
Sources said that since the new Insurance Act called for fair valuation to determine price of any stake hike rather than any pre-determined price as in the case of this insurer, the foreign partner expressed some reservations of the pricing.
While a final decision is yet to be taken, sources associated with the development said that the foreign partner may not continue.
To a query by Business Standard, Allianz said that India is a vibrant market where Allianz holds a keen interest and remains committed.
A final call on this is expected to be taken in mid-July.
Several ventures like Reliance General Insurance and Exide Life Insurance are 100% Indian owned. Even L&T Insurance was fully Indian owned until the recent announcement of its merger with HDFC ERGO General Insurance.
Indian promoters, partly due to new norms of control, and due to some prospective exits, will now play a greater role in insurance ventures.
Some additional partners may also be roped in where specific expertise on products, strategy is required, said a senior insurance consultant.