Royal Sundaram Alliance Insurance confirmed that Sundaram Finance (SFL) and Royal Sun Alliance Insurance PLC, UK, (RSA) have reached an agreement whereby RSA has agreed to sell its entire 26% equity stake in Royal Sundaram Alliance Insurance Company (RS) to SFL, subject to all regulatory approvals. This move from RSA was part of the company’s global strategy to focus on core markets.
The current developments do not have any impact on the Company’s operations.
Commenting on the developments, Ajay Bimbhet, Managing Director and CEO, Royal Sundaram stated, “It is going to be ‘Business as usual’ for Royal Sundaram with continued focus on serving our customers and enhancing our business. The entire process could take a couple of months post all regulatory approvals, including IRDAI of India.”
“Nothing really has changed for us. Our strategic vision for a sustainable business is expected to accelerate our growth and consolidate our position in the market. The teams, the products, the technology and more importantly, our promise towards putting the customers at the centre of everything we do, remain unchanged and committed to delivering what we aim for “, added Bimbhet.
Stephen Hester, RSA Group Chief Executive said, “This transaction continues the excellent momentum of our disposal programme and represents further progress in tightening the strategic focus of the Group.”
Commenting on the proposed transaction, TT Srinivasaraghavan, Managing Director, Sundaram Finance Ltd. said, “Sundaram Finance and RSA have enjoyed an excellent relationship over the past 15 years and built up a successful and respected brand in the insurance industry in India. RSA has added a lot of value on the technical aspects of the business and been a valued business partner. RSA Group had recently undertaken a review of their businesses globally and decided to exit non-core markets, of which India is one. While we are sorry to part company with them, we recognize that this is part of their larger global portfolio strategy.”
Srinivasaraghavan added, “India is entering an exciting phase in its economic journey and the financial services sector, specifically the insurance sector, is poised for significant growth. Given the strong synergy with the parent’s auto lending and housing finance businesses, this will further strengthen our presence in the retail financial services space.”
Royal Sundaram is in existence over 14 years. Over these past years, the company has strived to build a solid foundation of providing financial protection to its customers. It continues to hold ‘customer service’, ‘transparency and fairness’ and technical excellence’ very dear and as part of its ‘core values’. Royal Sundaram make things better for people through the protective and restorative power of insurance - an obsession, which guides and drives our business today.
About Royal Sundaram Alliance Insurance
Royal Sundaram Alliance Insurance Company Limited is a joint venture between Sundaram Finance and Royal & Sun Alliance Insurance plc, UK, (RSA). Sundaram Finance holds 49.90%. RSA holds 26% and other Indian shareholders hold the remaining 24.10% of the equity. Royal Sundaram is the first private non-life Insurance Company licensed to operate in India.
Royal Sundaram offers a range of innovative general Insurance products which includes Motor, Health, Personal Accident, Home and Travel Insurance for individual customers. The Company’s Accident & Health claims process received ISO 9001-2008 certification for effective customer service delivery. For Commercial clients, Royal Sundaram offers a wide range of specialised insurance covers in Fire, Marine, Engineering, Liability and Business Interruption risks. Royal Sundaram also offers specially designed products to the Small and Medium enterprises and rural customers. Royal Sundaram currently has over 5 million customers, 1,700 employees and its products are distributed in over 180 cities across India, through Agents, Distribution Partners, Affinity Partners and Brokers. For more information please visitwww.royalsundaram.in
About Sundaram Finance
Setup in 1954, the Sundaram Finance’s group services includes financing for the entire range of commercial vehichles, passesnger cars and contrsution equipment, as well as specially designed range of capital working products such as fuel finance and tyre finance. The company is also into home loans, mutual funds, non-life insurance, IT, BPO and distribution of a wide range of financial products and services. For more information please visit www.sundaramfinance.in
About RSA Group, UK
With a 300 year heritage, RSA is one of the world’s leading multinational quoted insurance groups. RSA has core operations in the UK, Scandinavia, Canada, Ireland and Latin America. Focussing on general insurance, RSA has around 21,000 employees and, in 2013, its net written premiums were £8.7 billion.