London, United Kingdom (CU)_ According to the latest announcement from HSBC Insurance Asia Pacific Holdings (INAH), the insurer plans to acquire Punjab National Bank’s share in order to increase its stakes in Indian insurer Canara HSBC OBC Life Insurance. During a regulatory submission. PNB said, “The bank has received a communication from [INAH], one of the shareholders of the company, conveying its intention to acquire Bank’s stake in the company”.
Additionally, PNB stated that it will perform additional evaluations on INAH’s plan. HSBC is pursuing further expansion of its insurance activities in Asia, owing to the region’s rapid growth. According to the media, the state-owned bank PNB acquired a stake in life insurance in 2020 when it acquired Oriental Bank of Commerce (OBC). OBC owned 23% of the insurer’s shares, while Canara Bank held 51%. INAH, a foreign partner, owns 26%.
Additionally, PNB controls 30% of PNB MetLife Insurance and is the largest stakeholder. Established in 2001, PNB MetLife’s other owners are US-based MetLife owning 26% and local partners Elpro owning 21% and M Pallonji & Company owning 18%. According to the Insurance Regulatory and Development Authority of India, companies cannot possess more than 10% of a second insurance business in India. This caused PNB to declare its intention to sell its stake in Canara HSBC OBC Life Insurance in May.
