KARACHI, March 12: Adamjee Insurance Company Limited (AICL) is in advanced stage of talks with two foreign insurance companies for a joint venture in life insurance business.

Chief Financial Officer (CFO) of the company Muhammad Ali Zeb said in reply to a query on Monday that the company was in final stages of discussions for a joint venture with a South African and an Australian insurance giant to complete its diversification plan into life assurance business. The company’s CFO, however, declined to reveal the names of those overseas joint venture partners.

He said that the agreement would be inked with one of the two parties

either this month or in April. Underwriting of life insurance business would be started before the end of the current year. The company would be able to augment its underwriting income from general insurance business through earnings from the new line of life insurance.

He thought that in spite of the overwhelming share that the State Life Insurance Company (SLIC) commands and other private life insurance companies that are already operating in the sector, the company would be able to ride out the challenge. There is said to be considerable untapped potential in the insurance sector, he added.

The Adamjee CFO observed that besides, the conventional niches in the life business, his company intended to launch into “banc assurance.” He said that the company had the edge of support of its group bank — MCB Bank-- with over 900 branches that would be used to penetrate in the urban as well as rural areas.

Such a distribution channel, he thought, would be cost effective. “The network of general insurance company’s offices is already in place,” he said and added that more people would be employed and the insurance agents already in the job would get wider field to seek life cover as well.