ICICI Lombard General Insurance and Bharti AXA General Insurance are set to merge their operations through a share swap transaction.
According to reports, the consolidation would lead to the formation of India’s third-largest non-life insurer.
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The deal involves ICICI Lombard’s acquisition of the Bharti AXA business and their subsequent merger.
The combined entity is expected to have an annual premium of INR164.47bn ($2.2bn) and 8.7% market share.
The transaction will provide two shares of ICICI Lombard to Bharti AXA General Life Insurance shareholders for every 115 shares of Bharti AXA held by them.
Financial details of the deal were not disclosed.
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By GlobalDataBharathi currently holds a 51% stake in the joint venture while the remainder is held by AXA. They will receive a total of 35.8 million shares in ICICI Lombard, worth €521m, a report by Reuters said.
The deal was approved by the boards of both insurance companies.
With the proposed transaction, ICICI Lombard expects to bolster its position in the non-life insurance space.
ICICI Lombard said in a statement: “Through this proposed transaction, ICICI Lombard shall be able to augment its distribution strength with Bharti AXA’s existing distribution partnerships. The combined entity shall also benefit from continued partnerships with Bharti Enterprises.”
Last month, it was reported that Bharti-AXA General is likely to merge with ICICI Lombard in an all-stock transaction that can value up to INR28bn.
