Exide Industries, the owner of ING Life Insurance, is deciding to sell 26 per cent of its stake to Korean insurer Samsung Life.
Exide has been holding shares in ING Life since 2005. It has had 50 per cent share in ING Life Insurance. Subsequently, when ING Group moved out of the venture, Exide took over the group's 26 per cent stake; it even bought 16.32 per cent from Hemendra Kothari Group and 7.68 per cent from Enam Group, all for a total consideration of around Rs 550 crore.
Post the buyout, Exide said it wanted a new international player to enter into the life insurance segment so as to push fresh equity into ING Life.
ING Group had granted Exide the rights to use the ING brand for a year. As soon as the deal gets approved, this would end.
The sudden exit of ING and other partners had shifted the entire responsibility of running the business on Exide. They therefore decided to introduce a partner such as Samsung Life as it could use its expertise in the global insurance segment in India.
For the period between April 2013-December 2013, ING Life Insurance had recorded a net loss of Rs 13.8 crore, compared with a net loss of Rs 30.3 crore for the corresponding period a year ago. For the April-December 2013 period, ING Life gathered total premium of Rs 1,090.10 crore, against Rs 1,079.26 crore in the same period of 2012. During the same time, its new business premium hiked by 7.7 per cent.