Italian insurance major Generali has signed agreements to acquire a majority stake in both its life and P&C joint ventures in India.
The agreement with Future Enterprises will see Generali acquire a 25% stake in Future Generali India Insurance (FGII) for around €145m.
Upon completion, Generali will hold about 74% in FGII, which is among the fastest-growing general insurance companies in the country.
Generali has also signed an agreement to acquire a nearly 16% stake of Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) for nearly €26m.
Additionally, the Italian insurer will subscribe to a preferential allotment of shares, worth around €21m, in the life insurance JV.
The transaction will give Generali around 68% in FGIL, which may increase up to 71% by the end of 2022 as a result of further preferential allotment of shares.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGenerali noted that it is the first foreign insurer to acquire a majority stake in both its Indian insurance JVs since the new rules on foreign ownership came into effect.
The deal, which awaits regulatory clearance, is part of Generali’s strategy to capitalise on the growth opportunities offered by the Indian market.
Generali Group international CEO Jaime Anchústegui Melgarejo said: “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.”
Generali Asia regional officer Rob Leonardi said: “We are 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.”
Meanwhile, Future Enterprises said it has received offers from potential buyers for its remaining 24.91% interest in FGII.
The Indian firm said it is also weighing its options for the divesture of its 33.3% interest in the life insurance JV, FGIL.
