State-owned Bank of India has sold its 18 per cent stake in Star Union Dai-ichi Life Insurance Company (SUD). BOI has sold its share to Dai-ichi Life Insurance Company (DILIC) forRs 540 crore. Following the stake-sale, the shareholding of BOI will come down to 30% from 48% whereas the shareholding of DILIC will come up to 44% from 26%.
Star Union Dai-ichi life insurance was incorporated in 2007 as a joint venture between BoI, Union Bank of India and DILIC. Union Bank of India continues to hold 26% in SUD joint venture. Dai-ichi is one of the world’s largest life insurance companies with premiums of $54 billion and assets of $484 billion on a consolidated basis as on March 31.
Since the government has exceeded the foreign investment limit up to 49 per cent in insurance sector, overseas partners in joint ventures have hiked their stake by buying their Indian partner’s stake in these ventures.