LIC eyes Saudi, NZ, Aus and African mkts

New Delhi: In its quest for becoming a global player, India's largest life insurer LIC is all set to float a insurance joint venture in Saudi Arabia.

"We are awaiting for licence from Saudi authorities to open an insurance company in Saudi Arabia it (license) may come any day," LIC executive director A K Dasgupta said.

He said the insurer has received approval from Indian government as well as regulator IRDA for the Saudi joint venture 'Saudi India Insurance Company' (SIICO).

Initial capital expenditure is pegged to be Riyals 100 million (approximately Rs 125 crore) for setting up the joint venture, Dasgupta said.

Besides LIC, the other partners in SIICO are LIC subsidiary LIC international (Bahrain), New India Assurance and Saudi insurer Alhokair.

NIA, the largest non-life insurer of India, has been roped in for the JV as the new company will be offering both life and general insurance products to the local population and NRIs.

"Saudi public will be offered 40 per cent stake in the company and SIICO will be listed in stock exchange," Dasgupta said.

At present, LIC has a presence in Saudi Arabia through its subsidiary LIC Internnational, Bahrain, which caters only to expatriate Indians.

Dasgupta said LIC is also exploring more overseas markets and growth avenues.

"We are exploring New Zealand, Australia, African countries closer to Mauritius, Bhutan and Trinidad & Tobago and Singapore," Dasgupta said.

The entry will be either through wholly-owned subsidiary route or joint venture.

At present, LIC has operations in many countries like Mauritius, Fiji, UK, Sri Lanka, Nepal and in all gulf countries inlcuding Baharin, Oman, Kuwait and UAE.

In Mauritius, Fiji, Nepal and Sri Lanka, the insurer is operating as a full-fledged insurer by offering products to both locals and NRIs.

Dasgupta said that these initiatives have been taken to spread LIC's network across the world.

"We are a dominant player in the Indian market and now want to increase business from overseas locations in the coming years," he said.

The life insurance behemoth has assets worth about Rs 5,30,000 crore and has 18 crore policy holders.