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Real estate major DLF Ltd has sold 74 per cent in its life insurance joint venture DLF Pramerica Life Insurance to Dewan Housing Finance and its group entities.
Though DLF did not disclose the deal size, sources close to the development said the company may have got Rs 200-250 crore.
The deal is subject to clearance by the Insurance Regulatory and Development Authority.
DLF Pramerica Life Insurance is a joint venture with Prudential International Insurance Holdings Ltd, a subsidiary of Prudential Financial Inc, which holds 26 per cent in the venture. DHFL is third largest housing finance company in the country.
Ashok Tyagi, Group CFO, DLF, said: “This transaction is in line with our ongoing strategy to divest non-core businesses.”
DLF Pramerica Life had reported losses of Rs 132 crore and Rs 128 crore in 2012-13 and 2011-12, respectively. The joint venture has 55 branches across India.
In 2012, DLF and Prudential were trying to rope in HCL as a partner. However, the deal did not happen because of differences over the arrangement proposed.
DLF said the business of the current entity will continue without interruption and the management will continue to run the joint venture.
The insurance sector in India, with over 40 private players in life and general segments, has been going through a difficult period. Earlier this year, Future Group sold 22.5 per cent stake in its life insurance joint venture with Italy’s Generali Group to Industrial Investment Trust Ltd for about Rs 300 crore.
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