Prudential sees India launch by end-2000

Parliament recently approved the Insurance Regulatory and Development Authority Bill, which seeks to open up the domestic insurance business to foreign and private Indian firms. Entry guidelines for the firms are being worked out.

He said he was satisfied with the 26 per cent foreign investment cap and the investment guidelines set by the Government for the insurance business.

quot;We are fully prepared and enthusiastic to operate within the restraints, and the investment guidelines will enable us to meet policy holders8217; expectations,quot; Jacomb said.

On other businesses, he said the success of an asset management company which is another joint venture with ICICI had made him optimistic about the Indian retail savings market. 8220;It8217;s been a great success and funds under management now total Rs 38 billion and that8217;s above our expectations.quot;

The focus now would be on concentrating on the mutual funds business and insurance, but Jacomb expected quot;other things to developquot; as the Indian financial sector is liberalised further.

quot;But of course other things will develop as the sector opens up, management of provident funds might come high on that list and the pension funds field will be of great interest to us,quot; he said.

Jacomb said the firm8217;s insurance business in Asia was growing rapidly, and his firm was putting more emphasis on the region.

quot;Our business in Asia even when you aggregate it, is smaller than the US and the UK but it is growing rapidly 8230; we put particular emphasis on this part of the world because of the rate of growth and our expectations for the long term future.quot;

Asia accounts for about 15 to 20 per cent of Prudential8217;s total premiums. The group8217;s operations cover Hong Kong, Singapore, Malayasia, Indonesia, the Phillippines, Taiwan and Vietnam. quot;We expect to start business in China later this year. The only notable exceptions in Asia are Japan and South Korea and they remain places we watch with interest,quot; Jacomb said.

He said the group would focus on consolidating its business in the 10 Asian countries, a process which would require quot;a lot of management and lot of capitalquot;.