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India opens Insurance sector to FDI


Guest longinvestor

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http://online.wsj.com/article/SB10000872396390443768804578036271356433486.html

 

India opens Insurance sector for upto 49% FDI.

 

In the 2010 AGM, I remember Prem saying he was waiting for this to increase FFH's stake in ICICI Lombard! Expect this soon.

 

Yes, this is very good news for Fairfax.  With their partner in ICICI Lombard, they will be the largest private insurer in India.  As the middle class continues to grow over the next 20-30 years, this portion of the business will become very large...probably not unlike the growth we've seen in Fairfax Asia over the last 5-6 years.  Cheers!

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Good news indeed and looks like the new administration is finally being constructive.  I suspect that HW will move in steps to something like increasing to 31%, 39%, then 45%, etc... over the next few years.  I held back from saying great news as ICICI Lombard has yet to write at 100CR and would not put them in the same bucket as Fairfax Asia that has been excellent/great.  Good news still as a nice place to put some of the cash only earning 0.5% to work.

 

 

Cheers

JEast

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True it is not a done deal, but at least it is going to parliament and all know the change would be good for the country via more capital, strengthen the rupee.  But then again, never underestimate what governments can and will do to shot themselves in the foot.  As for the ICICI investments, HW assists and plays the role of an advisor as they indicated a year or two ago when asked.

 

 

Cheers

JEast

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