Insurance giant Generali has signed agreements to become the majority shareholder in both its life and P&C joint ventures in India.
Both transactions are subject to the approval of relevant regulators.
Regarding the life business, an agreement has been signed to acquire the entire stake (around 16%) held by Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) for a consideration of around €26m (£22m, $29m).
As a result, following the closing of the transaction and completion of the preferential allotment, Generali will hold a stake of around 68% in FGIL, which may increase further to 71% by the end of 2022, following further preferential allotment of shares.
In the P&C business, Generali has agreed to acquire from Future Enterprises Limited 25% of the shares of Future Generali India Insurance (FGII) for a consideration of around €145m.
After closing, Generali will hold a stake of around 74% in FGII.
Generali will be the first player among international insurers to step-up to a majority stake in both its Indian insurance joint venture companies since the new foreign ownership cap came into effect.
Growth in India
Jaime Anchústegui Melgarejo, chief executive of international at Generali Group, said: “Increasing Generali’s stake in our Indian life and P&C insurance businesses represents a further step ahead in our growth journey in this high potential market.
“With an expected double-digit annual growth rate, India’s insurance market offers considerable opportunities, and we look forward to deepening our presence in this geography, becoming Lifetime Partners to an increasing share of Indian customers.”
Rob Leonardi, regional officer at Generali Asia, said: “We’re excited that we are now able to consolidate our position in our life and P&C insurance businesses, as it has always been our intention to increase our presence in India.
“Once the transactions are completed, we plan to do so in a way that will create more value for our more than 4 million customers, agents, partners and distributors.”