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.