PNB to rope in actuarial firm to find value of insurance JV CHOICE
Punjab National Bank will select an actuarial firm on Monday for calculating the embedded value of insurance joint venture CHOICE, in which the state-owned bank has to divest its stake as per regulatory requirement.
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New Delhi: Punjab National Bank will select an actuarial firm on Monday for calculating the embedded value of insurance joint venture CHOICE, in which the state-owned bank has to divest its stake as per regulatory requirement.
The New Delhi-based lender will open financial bids on July 11, 2022 to select the actuarial firm. At present, PNB has stakes in two insurance firms - PNB MetLife India Insurance Company Limited (PNB MetLife) and Canara HSBC OBC Life Insurance Company Ltd (CHOICE). PNB MetLife, a joint venture between MetLife International Holdings LLC (MIHL), Punjab National Bank (PNB), M Pallonji and Company Pvt Ltd, Jammu & Kashmir Bank (JKB), and other investors, has been operational since 2001, with MIHL and PNB being the promoters of the company.
PNB also became a stakeholder in CHOICE after the erstwhile Oriential Bank of Commerce merged into it. In March 2020, OBC and United Bank of India were amalgamated into PNB. As all assets and liabilities of OBC were subsumed into PNB by virtue of such amalgamation, PNB became a shareholder of CHOICE to the extent of OBC's stake of 23 per cent. Established in 2008, Canara HSBC Life Insurance Company is a joint venture between Canara Bank (51 per cent), HSBC Insurance (Asia Pacific) Holdings Limited (26 per cent) and Punjab National Bank (23 per cent).
HSBC's stake in CHOICE is held through INAH, a wholly-owned subsidiary of Hong Kong and Shanghai Banking Corporation Limited, which in turn, is a wholly-owned subsidiary of HSBC Holdings plc - the holding company of the HSBC Group.
