Two Indian insurance brokerages, First Policy Insurance Brokers and Amicus Insurance Brokers, will be merging, having received regulatory approval earlier this week.

In-principle approval for the transaction was granted by the Insurance Regulatory and Development Association of India (IRDAI) on Aug. 5. The merger process must complete several more closure formalities in compliance with the Companies Act, the firms said.

“This is a landmark step in the continuing journey of First Policy,” said Ashok Jain, director at First Policy. “We are confident that this transaction will be beneficial to our clients, employees, insurers and all our stakeholders. We are also excited that the enhanced capabilities, strengths and reach that this transaction brings will strengthen our current position. This merger shall contribute a 40% growth in our revenues. Besides, Amicus has a talented set of employees and we look forward to welcoming them on board soon. All the employees of the combined business entity will benefit with greater opportunities across functions and geographies.”

As part of the transaction, Jitendranath Nayer, chairman of Amicus, will become part of First Policy’s board of directors.

“We are delighted with this partnership between First Policy and Amicus as both companies have a similar approach to business,” Nayer said in a joint statement with K V Satheesh Kumar, CEO of Amicus. “We are confident that the amalgamation of our business with First Policy will bring greater business synergies and create value for all stakeholders.”