DHFL, PFI join hands
Financial service providers Dewan Housing Finance Corporation Limited (DHFL) and Prudential Financial, Inc. (PFI), which does business under the trade name Pramerica in selected countries outside the U.S., on Thursday announced that they have entered into a joint venture (JV) partnership to provide life insurance products to customers in India.
Under the terms of the agreement, which is subject to regulatory approvals, DHFL and its promoters' entities will acquire DLF Ltd.'s 74 percent interest in DLF Pramerica Life Insurance Company Ltd. (DPLI) and the company, upon closing is proposed to be renamed DHFL Pramerica Life Insurance Company Ltd. (DHFL Pramerica).
The business of the current entity will continue without interruption and the current management will continue to run the joint venture, under the stewardship of the shareholders.
"DHFL is thrilled to announce this joint venture with PFI, and we feel very excited to be partnering with an organisation having a deep understanding of the life insurance business, risk management practices and insurance expertise in various international markets. The legacy of a 138-year old financial institution like PFI with its life insurance expertise, coupled with DHFL's strong knowledge of the Indian retail financial services market, will create a solid foundation for this life insurance JV company here in India," said Kapil Wadhawan, Chairman and Managing Director, DHFL.
"This JV will help DHFL extend its philosophy of financial inclusion by broadening the range of products and services available to our customers as well as other customers, across India, especially in Tier 2 and 3 cities/towns. We believe that this JV will generate long-term value for DHFL shareholders," Wadhawan said.
He said, "My father started DHFL almost 30 years ago and created a legacy, and now, I am honored to partner with PFI to develop the blue print of what I hope will be another legacy business in the DHFL financial services group."
Tim Feige, Senior Vice President and International Insurance Group Executive at PFI said, "We are pleased to join forces with DHFL, one of India's leading financial services companies. We believe that DHFL is the right partner to support us and the talented people at DPLI in the next phase of the Company's growth."
"DHFL's strong branch network across India and deep knowledge of the retail financial services market will enable the business to enhance the products and services it provides to existing customers and partners, further expand its distribution capabilities and strengthen its ability to meet the increasing protection needs of India's growing consumer base in the years ahead. This new partnership also reinforces PFI's commitment to building a strong presence in India, a country whose future growth over the long term will enhance our 138-year history of providing financial security and peace of mind to customers around the world," he said.
(Posted on 25-07-2013)