Monday, March 28 2005 11:16 Hrs (IST) - World Time -

Dubai: Life Insurance Corporation (LIC) of India, its foreign arm LIC International and the New India Assurance Co will join hands for setting up a joint venture company in Saudi Arabia to offer life and non-life insurance products to NRIs and other residents in the Kingdom.

Bahrain-based LIC International, LIC India and the New India Assurance Co will form the new venture, Saudi Indian Insurance Company, and the registration process with the Saudi Arabian Monetary Agency (the Saudi Central bank) is in its first stage, a senior official said.

"LIC India and the LIC International along with New India Assurance and FA Al Hoiker have formed a venture. The initial share capital is likely to be around SR 100 million" (approx Rs 1,100 million), LIC International Managing Director M K Santhanam said.

"LIC, LIC (Bahrain) and New India Assurance will together have a 31 per cent equity stake" in the new venture, he was quoted as saying by the Bahrain Tribune newspaper yesterday (March 27, 2005).

While FA Al Hoiker would have 29 per cent holding in the company the rest (40 per cent) would be offered to public through an initial public offer.

He said the move represents LIC's entry into the Saudi Arabian market and a departure on the part of the Indian Government, which sanctioned Rs 280 crore till March 2005 for the insurance giant to fund its international activities.