Even as a host of insurers like HDFC Life and SBI Life, among others, are readying themselves for public listing, Bajaj Finserv has ruled out any such plans for both of its two insurance subsidiaries - Bajaj Allianz Life and Bajaj Allianz General. "We have not taken any call on the IPO so far. There is no need for us to list either of our two insurance ventures as we are already well-capitalised," Bajaj Finserv managing director Sanjiv Bajaj told agency.
He also said the company is already in talks with its foreign partners for increasing their stake to 49 percent in both of the insurance ventures, but added that the companies have not started a valuation process, even though Allianz had entered into an agreement with the Bajajs to increase its stake to 74 percent in life and 50 percent in general insurance company, if the law permits them to do so. The new insurance law allows only up to 49 percent FDI in both life and non-life ventures, up from 26 percent earlier. On the Q1 performance of both the life and general insurance ventures, Bajaj said, "Non-life grew 15 percent in the first quarter, whereas our new business in life insurance grew 70 percent and our overall business grew 55 percent up from 3-4 percent in the year-ago period." When asked about the massive attrition of agents from his life insurance company, he said, "There were 1.5 lakh agents four years ago, but it has come down to a low 60,000 now which was deliberate as we wanted to end the part-time model of appointing agents."
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