Real estate giant DLF announced on Tuesday its tie-up with US-based financial player Prudential Financial, Inc for a foray in life insurance business and said the two partners will invest about Rs 10 billion over the next ten years in the venture.
"Under the terms of agreement, Prudential will have 26 per cent stake and the remaining 74 per cent will be held by DLF Group in the JV -- DLF Pramerica Life Insurance Company Ltd (DLF Pramerica)," said Kapil Mehta, chief representative, India of Prudential Financial.
Pramerica is a brand name used in select countries by Prudential Financial, he said.
He said the company will initially have a paid up capital of Rs 100 crore (Rs 1 billion), including Rs 26 crore (Rs 260 million)
The company is applying for a licence from the Insurance Regulatory and Development Authority, and hopes to start operations by early 2008.
Mehta, who has been earlier associated with MaxLife, said Prudential is in talks with several banks and non-banking finance companies to distribute its insurance products, apart from having its own distribution products.
A DLF spokesperson said both the partners would have representatives on the Board, while Prudential would take care of the operations.