Generali Group is increasing its stake in its joint ventures with Future Group, showing its commitment to expanding its presence in the Indian insurance market.
The Italy-based multinational insurer will commit around €120 million (US$139 million) to increase its stake in the joint ventures – Future Generali India Life Insurance Company Ltd and Future Generali India Insurance Company Ltd – from 25.5% to 49%.
The long-standing partnership with Future Group brings in gross written premiums of €375 million (US$435 million) annually and has been growing steadily for several years, Generali said in a press statement.
“We see large potential for growth in India as part of our strategic expansion plan in Asia, and we could not have a more experienced partner that knows and understands the local landscape,” said Frédéric de Courtois, Generali Group’s CEO for global business lines and international. “Generali’s proven expertise in insurance combined with Future Group’s unrivalled distribution in India is a truly winning combination. We could not be happier to strengthen our ties with them.”
“Future Group has one of India’s biggest pool of consumption-oriented customers, and its network connects with customers for a large wallet share and at consistently high frequencies,” added Kishore Biyani, Future Group CEO and managing director. “With Generali, we have an unparalleled product and global insurance expertise that has the potential to significantly increase the throughput of our retail network and scale at Future Generali. Generali has been a partner of huge trust for us, and we are delighted to strengthen our partnership with them.”
The transaction is expected to be completed within the second half of 2018, subject to regulatory approval and customary closing conditions.