Kolkata, India, 28 July 2009: Magma Fincorp Limited, a leading name in Financial Services sector in India, and its Promoters, have signed a Joint Venture agreement with HDI-Gerling International Holding AG, Germany to enter into the general insurance sector in India. HDI-Gerling International is part of the Talanx-Group, 3rd biggest insurance Group in Germany. The Joint Venture, to be headquartered at Kolkata, will leverage on the strengths of the two companies to offer general insurance products through the existing strong distribution and service network of Magma with deep penetration in rural India. The agreement was signed at a meeting held in Kolkata by Mr Sanjay Chamria, Vice Chairman & MD of Magma Fincorp and Dr. Christian Hinsch, Chief Executive Officer, HDI-Gerling and member of the Board of Management of Talanx.

Addressing the media Mr Sanjay Chamria, Vice Chairman & MD, Magma Fincorp said, the new venture would be leveraging the strengths of both the companies to offer customized services to customers in India. Magma has a strong network of 150 offices across the country with strong focus on the rural and semi-urban markets.  77% of Magma’s branches and 63% of its customers are in the rural and semi-rural areas, which are generally underserved markets for insurance products, he added. The Company has served an important role in financial inclusion in these markets with more than 50% of the customers of Magma having availed their first time loan from the Company. “The new entity will be the first private sector general insurance company to be headquartered in the east zone” he added.

Dr. Christian Hinsch, Chief Executive Officer, HDI-Gerling, elaborating the role the company has been playing in Europe and Latin America, said through the joint venture HDI-Gerling would bring along its unique product design and cost efficient operational management skills apart from offering an excellent reinsurance platform which would help manage insurance risks appropriately.  HDI-Gerling has primary insurance operations in over 25 countries, with a particular focus on emerging markets like Brazil, Chile, Mexico, Poland, Turkey, Bulgaria, Slovakia and Ukraine. He also said, the joint venture in India with Magma is part of HDI- Gerling’s and Talanx’s global expansion plans. “The product expertise and emerging market experience of HDI-Gerling is expected to complement the trust and confidence that Magma enjoys with its customers and is expected to enable introduction of insurance products to this segment of India” he added.

About Magma Fincorp Limited

Magma Fincorp Limited (“Magma”) is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company.  The Company, having started operations over two decades back, is listed on the Bombay Stock Exchange Limited and the National Stock Exchange in India.

Magma provides a bouquet of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans.  Magma has a dedicated customer base of over 2 lac customers and has assets of approximately INR 8600 crores under management.  The company has 150 branches in 21 states and employs over 4100 people. Magma enjoys rating of AAA (SO) and AA from CRISIL and CARE respectively for various instruments.

About HDI-Gerling International Holding AG

HDI-Gerling International Holding AG (“HDI-Gerling”) is part of Talanx Group, which is the 13th largest player in Europe and the 3rd largest Insurance group in Germany with more than €19 billion of GWP in 2008.  The Talanx Group has a strong track record of over 100 years and has been the fastest growing insurance group in Europe between 1996 and 2008.

Talanx Group operates primary Life and Property & Casualty insurance operations in over 25 countries and reinsurance operations in over 150 countries. The group has significant experience in the reinsurance market through Hannover RE. The Talanx Primary Group has been rated A+/stable by S&P.