After entering into a joint venture with Indian real estate developer, DLF Group, Prudential Financial, a U.S.-based financial services company, is also eyeing business in India’s microfinance sector.
At an international micro-insurance conference in Mumbai in November 2007, Indian Finance Minister P. Chidambaram had urged insurance companies to expand their services to the poor. According to DLF Pramerica CEO Kapil Mehta, Prudential Financial plans to explore the microfinance sector and is scouting for potential partners.
The joint venture called DLF Pramerica Life Insurance Company, Ltd., in which the DLF Group holds 74 percent and Prudential the remaining 26 percent, was announced in February 2007. The DLF Group plans to invest Rs 1,000 crore (USD 253.2 million) over the next six years in the joint venture.
The DLF Group, founded in 1946, is one of India’s largest real estate firms. It has over 224 million square feet of existing development, including homes, offices, shopping malls, hotels, and infrastructure, and 738 million square feet of planned projects. It is currently led by Chairman Mr. K. P. Singh.
Prudential Financial is a leading financial services company in the United States that provides various products and services for individuals and businesses, including life insurance, mutual funds, and real estate brokerage. It was started in 1875 by insurance agent John Fairfield Dryden. Currently, it is led by Chief Executive Officer (CEO) and Chairman Arthur F. Ryan. According to its 2006 annual report, it has USD 616 billion in total assets and return on average equity of 14.7 percent.
By Mary Fu
Additional Resources:
The Hindu: “Prudential eyes micro-finance business in India”
Munich Re Foundation: “Microinsurance Conference 2007”
Prudential Financial: Home
Prudential Financial: “Prudential Board Elects John R. Strangfeld CEO and Chairman-Elect”
Prudential Financial: 2006 Annual Report
DLF Group: Home
Bloomberg: Currency Calculator
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