Indian private sector lender Federal Bank has announced plans to increase its stake in Ageas Federal Life Insurance (AFLIC) to 30% from the existing 26%.
This decision was approved by the Federal Bank board, with a binding memorandum of understanding (MOU) with Ageas Insurance International and AFLIC executed in this regard.
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Under the terms of the MOU, Federal Bank will acquire an additional 4% equity stake in AFLIC by purchasing 32 million shares at Rs30.45 ($0.36) each, totalling Rs974.4m.
The acquisition is pending approvals from the Reserve Bank of India and the Insurance Regulatory Development Authority of India.
It is expected to be completed by 31 October 2025, contingent upon the execution of a share purchase agreement between the parties.
Ageas Federal Life Insurance managing director and CEO Jude Gomes was quoted by various media agencies as saying: “We welcome this step by Federal Bank, which reflects the continued trust and confidence in our partnership and business growth potential.
“As we progress towards completing this transaction, we remain committed to strengthening our bancassurance-driven model, delivering customer-centric insurance solutions, and reinforcing our presence in India’s dynamic insurance sector.”
In May last year, Federal Bank formed a bancassurance partnership with Tata AIA Life Insurance to offer a variety of life insurance products. The alliance is aimed at utilising Federal Bank’s extensive network to enhance Tata AIA’s market reach.
