HDFC said the company would run the general insurance unit, HDFC Chubb General Insurance Company (HCGICL), as a 100 per cent-owned subsidiary for the moment.

As per the terms of the agreement, HDFC will buy 32,500,000 equity shares of Rs10 each, subject to receipt of requisite approvals.

The book value of the joint venture is about Rs100 crore ($24.4 million), according to sources.

HDFC, which also has a life insurance joint venture with Britain''s Standard Life, said it is looking for a strategic partner, probably with experience in general insurance.

The company did not provide the reasons for separation. Industry analysts have previously said the joint venture did not take off due to differences in business strategies of Chubb and HDFC.

HDFC''s other businesses include HDFC Bank and back-office firm Intelenet Global Services Ltd, a joint venture with Barclays Plc. There is some market speculation that HDFC may sell its stake in Intelenet.

Housing Development Finance Corporation (HDFC) has entered into an agreement with Chubb Global Financial Services Corporation, USA (Chubb Global) to acquire its stake in HDFC Chubb General Insurance Company (HCGICL), following which HCGICL will become a 100% subsidiary of HDFC.

HDFC distributes insurance products under a referral fee programme with HDFC Standard Life Insurance Company Limited (HDFC-SL) and HDFC Chubb General Insurance Company Limited (HDFC-CHUBB).

HDFC''s distribution network spans 219 outlets. Home Loan Services India Private Limited, a wholly owned subsidiary of HDFC, provides the company with a dedicated sales force to sell home loans.

To cater to non-resident Indians, HDFC has an office in Dubai and service associates in Bahrain, Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.