Bank of India has sold 18% stake it holds in the insurance joint venture Star Union Dai-ichi Life Insurance Company to its Japanese partner. This has been done in view of the change in the laws. Once the sale is approved by the regulator, Dai-ichi Life Insurance Company will have 44% stake in the company up from the current 26%. Bank of India’s holding will come down from 48% to 30% and Union Bank of India will have 26% in the joint venture. Star Union Dai-ichi Life Insurance Company was set up in 2007 as a joint venture between Bank of India, Union Bank of India and Dai-ichi Life Insurance Company. When the government relaxed norms with regard to foreign holding in Indian insurance companies, Dai-ichi Life Insurance had the option to purchase 18% additional stake in the joint venture.
