Liberty Mutual Insurance Group is increasing its share of an India joint venture to 49 percent. The move takes advantage of growth potential in a key emerging market, as well as new regulations in the country allowing the larger ownership stake.

The ownership stake involves Liberty Videocon General Insurance Ltd. a joint venture company that Liberty Mutual launched with Videocon Industries Ltd. in 2013. Liberty Videocon focuses on personal insurance products including motor, health, home and personal accident protection, and the provider of multiline insurance products and services now employs close to 800 people in 50 offices throughout India, according to the investment announcement.

Liberty Videcon does business through various distribution channels, Liberty Mutual said.

Why India? The market offers enormous growth potential on multiple levels, according to Liberty Mutual Chairman and CEO David Long.

“With a large relatively young population, a growing economy and a low level of insurance penetration, India remains an attractive market for future expansion, and we remain committed to growing our business in India,” Long said in prepared remarks.

Recently, Fitch Ratings bumped Liberty Mutual Group’s ratings outlook up to positive from stable, reflecting an acknowledgment of improved operating performance. Fitch also affirmed the financial strength ratings of Liberty Mutual and its subsidiaries at ‘A-‘ and its long-term issuer default rating at ‘BBB’.

For the 2016 second quarter, Liberty Mutual reported $15 million in net income, down more than 94 percent from $254 million in net income produced during the 2015 second quarter. Liberty Mutual sad losses from energy investment losses were a big factor behind the losses.

Source: Liberty Mutual Insurance Group