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Rediff.com  » Business » AMP-Sanmar may exit insurance biz

AMP-Sanmar may exit insurance biz

Source: PTI
June 07, 2005 15:31 IST
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Over six years after the insurance sector was opened up to private players in India, AMP-Sanmar Life, one of the first private entrants in life insurance sector, on Tuesday said it was exploring all options, including exiting the business.

AMP-Sanmar Life, a joint venture between Australia's AMP Life and Chennai-based Sanmar Group, was exploring options for restructuring ownership of their venture, including "outright sale to an existing or new player or bringing in a new partner," a statement said.

The move has been initiated, as the Australian partner AMP Life has decided to exit the life insurance venture in India, it said. AMP Life holds 26 per cent while Sanmar Group owns the remaining 74 per cent in the life insurance joint venture.

"The restructuring of ownership will have no impact on the policy holders. The business will continue and the policies will continue to be valid and will be honoured as per terms and conditions," said Graham Meyer, managing director, AMP-Sanmar.

He said the move was necessitated after AMP's decision to stay focused on its core wealth management business in Australia and New Zealand and keep its Asian focus centred in asset management through AMP Capital Investors.

"Sanmar has decided to take advantage of this opportunity to review its stake in the business, as well," the statement said. Meyer said AMP Sanmar remained a successful business and that this process would help ensure that it can now embark on its next phase of development.

"We want to assure our policy holders that they can be rest assured that any restructuring will only proceed if it is in the clear interests of AMP Sanmar's policyholders, employees and shareholders," he said.

As for the staff, Meyer said, "During this time, they will be encouraged to remain committed to the business and convey the same sentiments to our customers. We will also continue to update our policy holders and staff on all developments".

India's insurance sector - both life and non-life segments - was opened up to private players in December 1999, ending the decades-long monopoly of public sector companies, including Life Insurance Corporation in the life insurance sector and General Insurance Corporation, New India Assurance, Oriental India Insurance and United India Insurance in the non-life sector.

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