RIYADH, 13 April 2005 — Visiting Indian Finance Minister P. Chidambaram formally announced on Monday night the setting up of a SR100 million Saudi-Indian insurance venture.
The Saudi Ambassador to India Saleh M. Al-Ghamdi, a prominent Saudi investor in the venture Fawaz A. Abdulaziz Al-Hokair, Indian Ambassador M.O.H. Farook and many senior Saudi and Indian executives were also present during the declaration ceremony at the Four Seasons Hotel.
Chidambaram emphasized the strength of Indian insurance companies, referring particularly to the Life Insurance Corporation of India. He said that the tie-up between Indian insurance companies and a well-known Saudi business group would further boost links between the two countries. Life Insurance Corporation of India, its foreign arm LIC International and the New India Assurance Co. have combined to set up the joint company with Saudi partners to offer life and non-life insurance products to NRIs and other residents.
Bahrain-based LIC International, LIC India and the New India Assurance Co. have formed the new venture — Saudi Indian Insurance Company — with Saudi investors. The registration process with the Saudi Arabian Monetary Agency (SAMA) is in its early stages. “The initial share capital is SR100 million”, said Al-Hokair, speaking after the ceremony. “LIC, (Bahrain) and New India Assurance will together have a 31 percent equity stake in the new venture”, he said.
Al-Hokair with other Saudi investors would have 29 percent holding in the company and the balance (40 percent) would be offered to public through an IPO in June-July this year said Al-Hokair.
The ceremony was also attended by Mohammed Adel, CEO of Geant Saudi Ltd; M.K. Santhanam, managing director of LIC International (Bahrain), R. R. Nair, executive director of LIC India; Murleedharan, general manager of New India Assurance (Mumbai), S. M. I. Hassan, chief organizer of LIC operations in Saudi Arabia and G.V. Ramanna, resident manager of New India Assurance.
Referring to the new Saudi Indian Insurance Company, which is awaiting an operating license from the Saudi government; Al-Hokair said that the joint venture was a new example of the Saudi Arabia?s “look-east policy.”