AMP Sanmar Life Insurance was a 74:26 joint venture between the Chennai-based Sanmar Group and AMP ASAL Pty Ltd., a part of the Australian wealth management group named AMP. In April 2005, AMP surprised the Indian insurance sector by announcing its intention to exit the Indian joint venture. As it is the first instance where both partners exited the venture, after the insurance sector was liberalized in India, the case intends to provoke discussion from both the regulatory aspects of insurance and also the plight of policyholders, who bought policies from AMP Sanmar Life. Any Indian buyer of the joint venture would naturally look for the exit of Sanmar. Any foreign buyer would also probably have his own Indian partner. To facilitate the process, Sanmar is offering its stake for sale along with AMP's. However, if any foreign buyer is interested, Sanmar will talk to them.
AMP Sanmar Life Insurance was a 74:26 joint venture between the Chennai-based Sanmar Group and AMP Asal Pty Ltd., a part of the Australian wealth management group named AMP. It had an equity base of Rs. 217.50 cr ($28 mn). Owing to its expertise in the sector, AMP was in charge of the operations in India. Sanmar Group, the Indian partner, had its presence only in the board and was not involved in its day-to-day operations. In April 2005, AMP surprised the Indian insurance sector by announcing its intention to exit the Indian joint venture. AMP's business worldwide was restructured and so it decided to exit the insurance business in India and focus on its wealth management business in Australia and New Zealand. |
