Dutch company ING Insurance International is all set to exit the Indian insurance market, according to media reports. ING Insurance International holds 26% stake in ING Vysya Life Insurance Company.
Battery major Exide Industries, which is the largest shareholder in the company with 50% stake, is also said to exit ING Vysya Life Insurance, the reports added.
As part of its global restructuring process, ING Insurance has decided to sell its asset management business by 2013 and exit insurance business. The funds received will help the company to pay back $7 billion that it received from European Union in 2008. During that financial crisis, the company received $14.6 billion through a bailout plan.
According to IRDA (Insurance Regulatory Development Authority) data, ING Life collected premium of Rs. 487.9 million in January 2012. In February and March, the private insurer collected premium of Rs. 625.5 million and Rs. 1,169.6 million, respectively.
But in April, the premium collection declined to Rs. 140.9 million. A major portion of the business came from individual single and non-single premium collections.