ICICI Lombard, Bharti AXA merger completed

Deal marks global giant's exit from the market

ICICI Lombard, Bharti AXA merger completed

Insurance News

By Gabriel Olano

The combination of Indian insurers ICICI Lombard General Insurance and Bharti AXA General Insurance has completed.

As a result, ICICI Lombard General Insurance has ceased to be a subsidiary of ICICI Bank, after the bank’s shareholding in the insurer has decreased to 48%. The transaction also marks the exit of both Bharti Enterprises and AXA from the Indian non-life insurance market, Mint reported. AXA used to hold 49% in the insurer, while 51% was held by Bharti Enterprises, which has interests in manufacturing, telecommunications, agribusiness and many other industries. The two firms are also partnered in a life insurance venture, Bharti AXA Life Insurance.

AXA and Bharti will receive a total of 35.8 million shares of ICICI Lombard, which represents €664 million (SG$1.05 billion) at current market value.

The all-stock transaction, which was announced last year, resulted in the creation of India’s third-largest general insurer.

The Insurance Regulatory and Development Authority of India on Sept. 3 gave its final approval to the demerger of Bharti AXA General Insurance to ICICI Lombard General Insurance via a scheme of arrangement.

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