Engineering and construction major, Larsen and Toubro, is set to launch an asset management company and has finalised US based Travelers as its joint venture partner for its non-life insurance venture.

The asset management company will be a 100 per cent-owned subsidiary of L&T for which it will be seeking regulatory approval shortly.

The general insurance company will be a 74:26 per cent joint venture between L&T and Travelers, which is the second largest underwriter of commercial property casualty insurance in the US.

The MoU between L&T and Travelers is likely to be signed soon. The venture will focus primarily on areas such as project insurance.

L&T, which is already present in the financial services space through its two non-banking finance companies - L&T Finance and L&T infrastructure finance - is also considering setting up special purpose vehicles for financing different projects in infrastructure (particularly shipbuilding and railways) and capital goods.

The SPV could also look at picking equity stakes in infrastructure companies, said sources close to the developments. Travelers has field offices in every US state, besides operations in the UK, Ireland and Canada.

The company also offers personal insurance which includes home, auto and other insurance products for individuals. L&T Finance had picked up 5 per cent stake in City Union Bank [Get Quote].