11/19/2014

Buffett's Berkshire shuts insurance broking biz in India - Business Today

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PTI New Delhi Last Updated: July 18, 2013 | 00:41 IST

At a time when Posco and Arcelor Mittal have shelved their mega steel projects
in India, another global player, US billionaire Warren Buffett-led investment firm
Berkshire Hathaway Inc has decided to close its online insurance broking business
in the country.
These developments comes at a time when India is trying hard to attract foreign
investments to boost the sagging economy.
Legendary investor Buffet's Berkshire had forayed with a much fan-fare into the
Indian non-life insurance sector as a corporate agent of Bajaj Allianz General in
2011.
"We have received an intimation that our corporate agent (Berkshire India, a
majority-owned non-direct subsidiary of Berkshire Hathaway) has decided to
discontinue their online model of selling insurance," Bajaj Allianz General
spokesperson said in a statement.
All the customers sourced by them would be provided seamless service by an
exclusive team set up at Bajaj Allianz General Insurance, it said.
The official, however, declined to give reasons behind the development.
Bajaj Allianz is the joint venture between Germany-based Allianz Group and Bajaj
Finserv in which 74 per cent of stake is held by the latter. The company had a gross
written premium collection of around Rs 4,000 crore last fiscal.
With the total asset size of $427.45 billion Berkshire Hathaway and its subsidiaries
engage in diverse business activities including property and casualty insurance and
reinsurance, as well as finance and retailing services.

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Meanwhile, in the biggest foreign investment pullout, world's largest steel maker
ArcelorMittal today scrapped its $12 billion steel plant in Odisha over inordinate
delays, problems in acquiring land and securing iron ore linkages.
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11/19/2014

Buffett's Berkshire shuts insurance broking biz in India - Business Today

TECH TRACKER

The development comes just a day after South Korean steel major Posco pulled out
of its Rs 30,000-crore steel mill in Karnataka and the government widened its
doors to foreign direct investment for a dozen sectors.
Steel baron Lakshmi Mittal-headed ArcelorMittal's proposed plant in Odisha was
among the biggest foreign direct investments India has attracted.

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water, CO2 into fuel
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Two other plants -- Rs 52,000 crore steel mill of Posco in Odisha and Rs 50,000
crore steel mill of ArcelorMittal in Jharkhand are the two other largest FDI India
has attracted.

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Both the projects are also facing inordinate delays.

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