XL Catlin to join hands with Mahindra arm

XL Catlin is set to enter into a joint venture agreement with Mahindra & Mahindra, India’s largest farm equipment manufacturer.

“We have signed an agreement with XL Catlin to start a general insurance company in a partnership where Mahindra & Mahindra will own 51 percent and XL Catlin 49 percent,” said Ramesh Iyer, managing director of Mahindra Finance. “We will soon approach the insurance regulator for a licence.”

Mahindra Finance is the nonbanking finance company of Mahindra & Mahindra. Mahindra’s presence in the automobile industry will provide enormous opportunities to sell motor insurance. The business needs an initial capital of INR100 crore. XL Group recently bought a 20 percent stake in Mahindra Insurance Brokers for INR260 crore, valuing it at INR1,300 crore, according to a report in The Economic Times.