Ageas Federal Life Insurance (AFLI) on Thursday stated it has grow to be the first life insurance firm in India to have a 74% stake held by a foreign partner after Belgium-based Ageas Insurance International accomplished the acquisition of the 25% stake within the life insurance three way partnership (JV) from IDBI Bank.
Ageas has acquired the extra 25% stake of IDBI Bank in Ageas Federal Life Insurance for a complete money consideration of Rs 580 crore.
After the acquisition of the extra 25% stake, Ageas’ shareholding within the JV rose to 74% from the earlier-held 49%. Federal Bank continues to carry a 26% stake within the life insurer, whereas IDBI Bank exited as a shareholder.
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IDBI Bank had entered right into a share buy settlement (SPA) to promote its whole stake of 200 million fairness shares in AFLI to Ageas Insurance International NV (Ageas). “IDBI Bank has completed the sale transaction of its entire stake of 20,00,00,000 equity shares in AFLI pursuant to the receipt of the requisite regulatory approvals. Pursuant to this sale, IDBI Bank’s shareholding in AFLI now stands at NIL,” the financial institution knowledgeable in a inventory change submitting.
“Ageas acquires the additional 25% stake for a total cash consideration of Rs 580 crore (EUR 73 million),” Ageas stated in a launch. Founded in 2007, AFLI recorded 10 consecutive years of revenue because it first declared a revenue in FY13. Its whole premium rose by 13% to Rs 2,207 crore in FY22 pushed by a 27% rise in particular person new business premium and a 5% rise in renewal premium. It declared a web revenue of Rs 94 crore in FY22.
Speaking on the shareholding change, Vighnesh Shahane, MD & CEO of Ageas Federal Life Insurance, stated: “Further to the announcement by our finance minister in the Union Budget 2021 to increase the permissible FDI limit from 49% to 74% in insurance companies, we are proud to become the first life insurance company in the country to have 74% stake held by our foreign shareholder, Ageas.”
Despite the assorted challenges as a result of pandemic, as properly as the prior uncertainty across the stake sale, the corporate persistently delivered superior outcomes, achieved new milestones, and declared revenue for ten consecutive years, Shahane stated. “With the continuing support of our shareholders – Ageas and Federal Bank, we are confident that the next chapter of our transformative journey will bring even more success and growth for the organisation,” he added.