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Manulife, HDFC Life in race for HSBC insurance stake

India Infoline News Service | Mumbai |

Domestic partners of Canara HSBC OBC Life Insurance are looking for a partner who can buy HSBC’s 26% stake

Major foreign and domestic insurers are eyeing HSBC Insurance’s 26% holding in Canara HSBC Oriental Bank of Commerce Life Insurance, according to a media report.

Canara HSBC OBC Life was launched in June 2008 and is a joint venture between Canara Bank (holding 51%), HSBC Insurance (Asia Pacific) Ltd (holding 26%), the Asian insurance arm of HSBC and Oriental Bank of Commerce (holding 23%).

The joint venture operates a bancassurance model and has a network of over 6,000 bank branches of its corporate agents. Bancassurance is an arrangement between banks and insurers to sell insurance products through banks.

Canada-based life insurer Manulife and HDFC Life are said to mull for HSBC insurance stake. The company which buys HSBC's stake can sign a new bancassurance agreement with the two banks, in addition to the existing bancassurance arrangement.

HSBC has been planning to exit the Indian business. Now the domestic partners (of Canara HSBC OBC Life Insurance) are looking for a partner who can buy HSBC’s 26% stake, the report added.
 

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