Generali has agreed to become the majority shareholder in both Future Generali India Insurance (FGII) and Future Generali India Life Insurance (FGIL), its Indian P&C and life insurance joint ventures, respectively.
In the P&C business, Generali has agreed to acquire 25% of FGII from Future Enterprises for around €145 million (SG$218.6 million). This will result in Generali holding approximately 74% in FGII. As of March, FGII had €450 million in written premiums.
For the life business, Generali will acquire the entire stake (around 16%) held by Industrial Investment Trust Limited (IITL) in FGIL for around €26 million. FGIL reported around €150 million of gross written premiums as of March. In addition, Generali will subscribe to a preferential allotment of shares in FGIL, worth around €21 million. As a result, Generali will hold a stake of around 68% in FGIL, which may increase further to 71% by the end of 2022, following further preferential allotment of shares.
Generali said that the transactions are in line with its focus on fast-growing markets under its Lifetime Partner 24: Driving Growth strategy. Generali will be the first international insurer to acquire a majority stake in both its Indian insurance joint venture companies since the new foreign ownership cap came into effect.
“Increasing Generali’s stake in our Indian life and P&C insurance businesses represents a further step ahead in our growth journey in this high potential market,” said Jaime Anchústegui Melgarejo, CEO, international, Generali Group. “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.”
“We’re 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,” said Rob Leonardi, regional officer, Generali Asia. “Once the transactions are completed, we plan to do so in a way that will create more value for our more than 4 million customers, agents, partners and distributors.”