Ageas acquires majority stake in the Indian Life insurance joint venture Ageas Federal Life
20 Mai 2022 - 7:30AM
Ageas acquires majority stake in the Indian Life insurance joint
venture Ageas Federal Life
Ageas acquires majority stake in the Indian Life insurance joint
venture Ageas Federal Life
Ageas announces today that it has signed
an agreement to buy the 25% stake of IDBI Bank in the Indian Life
insurance joint venture Ageas Federal Life Insurance Company Ltd.
(AFLIC).
With this transaction, Ageas will increase its
interest in the joint venture it currently operates together with
IDBI Bank and Federal Bank to 74%. Federal Bank maintains its 26%
share in AFLIC. IDBI exits as a shareholder but remains a
distribution partner. This transaction is a second step up for
Ageas after the increase of its stake from 26% to 49% in December
2020. (read the related press release)
This investment aligns with Ageas’s strategy to
expand in regions in which it is already present and in promising
markets with a low insurance penetration and high potential for
growth such as the Indian Life insurance market.
Ageas will pay IDBI Bank a total consideration
of INR 5.8 billion (EUR 69 million) in cash for the 25% stake in
AFLIC.
The transaction is subject to regulatory
approval and is expected to be closed in the second half of
2022.
|
This investment offers Ageas a unique opportunity to take control
of one of its operating entities in Asia. I want to take this
opportunity to express my gratitude to the management and employees
of IDBI Bank for their contribution over the past 16 years in
bringing the company to where it stands today: a highly valued and
profitable Life Insurance business. Our ambition is to continue
this success story together with our long-standing partner Federal
Bank, and to further develop the business in what is one of the
world’s largest and fastest growing economies and a market with
great long-term potential. |
|
Hans
De Cuyper, CEO Ageas |
Ageas, IDBI Bank and Federal Bank set up the
Life insurance joint venture IDBI Federal Life Insurance Company
Ltd at the end of 2006, and since that time its gross inflows have
grown consistently to reach EUR 247 million in 2021. Within six
years the company was profitable and has continued to be,
generating a net profit of EUR 9 million in 2021.
Ageas is a listed international
insurance Group with a heritage spanning almost 200 years, offering
Retail and Business customers Life and Non-Life insurance. As one
of Europe's larger insurance companies, Ageas concentrates its
activities in Europe and Asia through a combination of wholly owned
subsidiaries and long-term partnerships with strong financial
institutions and key distributors. Ageas ranks among the market
leaders in the countries in which it operates. It represents a
staff force of about 40,000 people and reported annual inflows
close to EUR 40 billion in 2021 (all figures at 100%).
- Pdf version of the press release
Ageas SA NV (EU:AGS)
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