AON exits Indian broking insurance JV, may look for a new partner

Aon BV , the world’s largest insurance brokers, has decided to exit from the existing Indian broking joint venture-AON Global Insurance.

Aon was holding 26% while Global Insurance , promoted by Prabodh Thakkar has 74% in the joint venture.

Aon in a statement said , ““ We are not exiting India. Aon remains committed to India and its Indian operations. Aon maintains a strong presence in India as a leading HR consulting and outsourcing provider in the region.  For Aon’s insurance broking operations, Aon is parting ways with its current insurance broking joint venture (JV) partner, although Aon remains committed to continuing its operations in India and retains its 26% equity shareholding in the JV. Aon is focused on ensuring that clients’ needs come first. Aon has been working with full transparency to regulators to help ensure an appropriate solution.”

When contacted by PTI, chairman of Aon Global, Prabodh Thakker declined to comment anything on the issue except saying that “the insurance broking operation will continue to grow in the country.”

Global, owned by Thakker family, has been functioning in the country’s insurance broki market for more than three decades successfully.

Even before entering the joint venture with Aon in 2003, Global had been in trading relationship with the foreign company for a few decades in past.

The trading relationship was converted into a formal JV in 2003 with a view to have a long-term commitment in India which has been jolted with regulatory changes, the source said.

The RBI guidelines talk of fair and reasonable price for the domestic partner for any such exit.

Source: Asia Insurance Post

Date: 16th October 2015

Source: Asia Insurance Post

Date: 16th October 2015

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