MetLife India on Monday announced re-branding of its insurance venture to PNB MetLife India Insurance after Punjab National Bank (PNB) picked up 30 per cent stake in the life insurance company.

Launching the brand on Monday, finance minister P Chidammbaram, said, “For a successful life insurance business, it is important to bring simple products to market that are easy to understand. Also, insurance companies should make sure that there is no mis-selling at any level.”

With the change in shareholding pattern, Jammu and Kashmir Bank will hold 5 per cent, Shapoorji Pallonji 17.15 per cent, Elpro Group 21.46 per cent, while MetLife would continue to hold 26 per cent stake in the life insurance venture.

“Although we would not be able to reveal the monetary value of the transaction, shareholders had to sacrifice their stake to accommodate us,” said K R Kamath, CMD of Punjab National Bank.

Apart from PNB, MetLife India has two other banks, Karnataka Bank and Jammu and Kashmir Bank as their distribution partners.

“At present, around 60 per cent of business is coming from bank channels. We expect it to go up over the next few years. Also, it would be significant as the volume of business grows,” said Rajesh Relan, MD and country manager of PNB MetLife India Insurance.

MetLife India had collected new business premium of Rs 551.57 crore during April – December 2012, compared with Rs 643.77 crore in the same period last year, registering a decline of 14.32 per cent. MetLife India had started its operation in India in 2001.

sagarsen@mydigitalfc.com