Larsen & Toubro’s (L&T) general insurance subsidiary - L&T General Insurance (LTGI), has decided mutually to call off the discussions around the proposed JV with Future Generali Insurance (FGI). LTGI will now continue its focus on expanding its business footprint in the areas of both general and health insurance.
Last year in March, LTGI was in talks with Future Generali Insurance (FGI) for the formation of a joint venture (JV) that would combine and continue the business of general insurance in India. L&TGI and FGI had entered into a non-binding agreement to jointly examine the terms of a potential transaction.
L&T General Insurance Company commenced business operations in 2010-11. The company operates out of 17 branches spread over India and earned gross written premium of Rs 253 crore during the financial year ending March 31, 2014 indicating a growth of 39% over the previous financial year as against an industry growth of 12% for the same period. The said premium includes around Rs 207 crore from property and casualty insurance and Rs 46 crore from health insurance.