PNB buys 30% stake in MetLife India

Public sector Punjab National Bank (PNB) has decided to acquire 30 per cent stake in MetLife India, an affiliate of MetLife Inc, and become a joint venture partner in the life insurance company. Following the closing of the transaction, the joint venture will rebrand as PNB MetLife o leverage the strengths of the two brands in the Indian market.

PNB started the process in December last year when it invited expression of interest from insurance companies across the world.

The bank received responses from 26 Indian and international companies proposing different models.

After evaluation of the various models, the bank opted to participate in a brownfield venture by acquiring stake in an existing Indian life insurance company. Accordingly, RFP was issued to 10 Indian insurance companies which had proposed this model. The bank shortlisted three life insurance companies after evaluating the technical bids: Bharti AXA, Aviva and MetLife, and based on the financial bids accepted MetLife India’s offer. PNB did not reveal the financial details of the deal. The transaction is subject to approvals from the Irda, the Reserve Bank of India and other regulatory bodies.