Principal to join insurance bandwagon

The US based Principal Financial Group is the new one to join the insurance bandwagon. The new insurance company on the block will be a joint venture between Principal and UK paints along with Indian group-Punjab National Bank and Vijaya Bank. Together it will form-Principal PNB Life Insurance. The company has applied to the insurance regulator for R1 license. In this venture, Principal will hold a stake of 26%. UK paints will hold 32%, followed by Punjab National Bank and Vijaya Bank, which will have a stake of 30% and 12% respectively. The new company will start up with the initial capital of Rs 110 crore and intends to use bancassurance as a medium to make its hold in the insurance market.