QBE STARTS INDIAN JOINT VENTURE WITH RAJAN RAHEDA

Australian insurer QBE has formed a joint venture with diversified Indian conglomerate Rajan Raheda to begin insurance operations in India. QBE said that it would be investing A$7m (US$6.16m, Rp248.5m), in the non-life operation, which will likely begin writing business from 2008. QBE will have a 26% stake in the venture, with an option to increase that stake to 50% if the foreign direct investment cap in India is ever raised. Indian finance minister P Chidambaram has promised several times that the cap will be raised, but has been unable to push the legislation through parliament in the face of opposition from parties that keep the current administration in power. A Rajan Raheda subsidiary, Prism Cement, will hold the 74% majority stake. Rajan Raheda already has stakes in ING Vysya Life and ING Mutual Fund.