(MENAFN- IANS)
New Delhi, Jan 27 (IANS) 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.
In the P&C business, Generali has agreed to acquire from Future Enterprises Limited 25 per cent of the shares of Future Generali India Insurance (FGII) for a consideration of around € 145 million. After closing, Generali will hold a stake of around 74 per cent in FGII. FGII is among the fastest growing general insurance companies in the market with a diversified product and distributor portfolio; as of March 2021 (fiscal year end for Indian insurance companies), it reported around € 450 million of premiums.
Regarding the Life business, an agreement has been signed to acquire the entire stake (around 16 per cent) held by Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) for a consideration of around € 26 million. FGIL reported around € 150 million of gross written premiums as of March 2021. In addition, Generali will subscribe to a preferential allotment of shares in FGIL (around € 21 million). As a result, following the closing of the transaction and completion of the preferential allotment, Generali will hold a stake of around 68 per cent in FGIL, which may increase further to 71 per cent by the end of 2022, following further preferential allotment of shares.
Generali is 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.
Jaime Anchústegui Melgarejo, CEO International, 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, 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.'
--IANS
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