ICICI Prudential Life Insurance has agreed to take over the life insurance business of Sahara India Life Insurance, which was put under administration by the regulator IRDAI last month.
“ICICI Prudential Life has agreed to take over the policyholders’ liabilities of Sahara Life and has already commenced valuing the liabilities of the policyholders and earmarking the matching assets of Sahara Life,” said Mr Nilesh Sathe, Member, Life, of IRDAI.
“We have given them three weeks to submit the valuation report, which will be reviewed by us for approval,” Livemint reported citing Mr Sathe.
ICICI Prudential, which is India's only listed insurer, declined to comment.
Mr Sathe said the transfer of Sahara Life’s business to ICICI Prudential should be completed in a couple of months.
Last month, the IRDAI named LIC, ICICI Prudential, HDFC Standard Life, Bajaj Allianz, Kotak Mahindra and SBI Life as candidates to take over Sahara India Life’s business
The IRDAI took over the administration of Sahara on 12 June, in a first of its kind move in the insurance sector saying “the IRDAI has reasons to believe that Sahara India Life Insurance Co is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies”. On 23 June, the IRDAI barred Sahara from writing new business.
According to Mr Sanjay Agarwal, director and CEO of Sahara Life, the company will be making a representation to the regulator to the effect that policyholders’ interests had never been compromised. The company is hoping that the regulator will review its decision, he said.