PNB Metlife may become 4th insurer to list on SEs

The spokesperson of PNB Metlife did not respond on the likely embedded value of the company. NSEBSEHDFC Bank LtdLoading data…

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        ChartsValuation & Peer ComparisonCommunity BuzzPEER COMPANIES PNB Metlife may well be the fourth life insurance company to list on stock exchanges as the company looks to raise funds, three people close to the development said.The company could be valued at over Rs 8,000 crore.

        «PNB Metlife has initiated the process of listing plan,» said a source on the condition of anonymity. «Listing will follow SBI Life and HDFC Life.»

        ICICI Prudential was the first insurer to be publicly listed in September 2016. SBI Life and HDFC Life are in the process of listing by December.

        «The Board looks at all opportunities to add value to the business and an initial public offering is clearly one option,» said a PNB Metlife spokesperson in response to the query. «We can confirm that the board has agreed to explore an IPO but it is too early to make any further statements at this time.» The company has embedded value of Rs 2,100 crore, said two sources mentioned earlier.

        The spokesperson of PNB Metlife did not respond on the likely embedded value of the company.

        Given that ICICI Prudential Life is trading at close to 4.5 times to 5 times the EV, PNB Metlife could get a valuation of Rs 8,400 crore to Rs 10,500 crore.

        The company has assets under management of Rs 16,000 crore. It had reported profit after tax of Rs 103 crore in the last financial year up from Rs 63 crore in the previous year.

        PNB MetLife is the seventh largest life insurer in retail weighted premiums for the last financial year with 3.5 per cent of market share and premium income of Rs 1,015 crore.

        It lost 50 basis points in market share during the last year. Its new business income grew 14.57 per cent to Rs 1,150.18 crore at the end of March 31, 2017 against industry growth of 26.13 per cent.

        Punjab National Bank had bought the stake in Metlife in 2013 with a 5-year lock-in period. The insurer is present in 7,000 locations, including through branches of Punjab National Bank. It is the second largest life insurance firm promoted by a state-run bank, after State Bank of India-led SBI Life.

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