Italian financial services firm Generali said on Wednesday it had become the majority shareholder of the Indian life insurance joint venture following all regulatory approvals.
The company has completed the acquisition of Industrial Investment Trust Limited (IITL)’s entire interest of approximately 16 percent in Future Generali India Life (FGIL) and the subscription of additional shares in FGLI upon receipt of all necessary approvals from the relevant regulatory authorities. organizations. and competition authorities.
Generali now owns about 68 percent of FGIL, which could increase further to 71 percent by the end of 2022, after further subscription of shares, the company said in a statement.
Generali is the first player among international insurers to acquire a majority shareholder position in its Indian joint venture since the new foreign ownership limit.
Last year, the government amended the Insurance Amendment Bill, 2021, to increase the foreign direct investment (FDI) limit in the insurance sector from 49 percent to 74 percent.
The deal is expected to strengthen Generali’s position in high-growth markets and confirms the Group’s commitment to achieve profitable growth while creating value for customers.
Jaime Anchústegui Melgarejo, CEO International of Generali, said: “This acquisition fits in with Generali’s strategy to strengthen its position in a market with great potential.
We look forward to deepening our presence in India and becoming Lifetime Partners for an increasing portion of Indian customers.”
With this, the debt-ridden Future Group has spun off its stake in the insurance company Future Generali India Insurance for a cash consideration of Rs 1,252.96 crore as part of its asset monetization plans to repay debt.