Hero FinCorp, a financial services subsidiary of leading Indian motorcycle maker Hero MotoCorp, is planning to enter the general insurance industry by acquiring a controlling stake in an existing insurer, according to sources.
Until recently, Hero was in talks with Future
Generali, a joint venture between the Future Group and the Italy-based global insurer, but the deal did not materialise, the sources added.
“The talks failed because of mismatch in valuation,” one of the sources told Indian business daily Mint.
“The foray into the insurance sector is the next step towards becoming a full-fledged financial services company like Bajaj Finserv which owns Bajaj
Allianz General Insurance” said the second source.
“[Hero FinCorp] is no longer actively considering a stake sale for now,” they added. “But once another target is identified, talks will resume.”
Hero FinCorp currently offers auto and property loans, as well as other non-banking financial services. As of mid-2017, it had a total credit portfolio of INR100.28 billion (US$1.54 billion). Hero MotoCorp is the largest shareholder in Hero MotorCorp with a 40.3% stake.
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