After the acquisition, the shareholding of Ageas elevated from 49 per cent to 74 per cent
Published 23.09.22, 12:54 AM
Ageas Federal Life Insurance (AFLI) has change into the primary life insurance firm in India in which a overseas associate holds a 74 per cent stake after Belgium-based Ageas Insurance International accomplished the acquisition of a 25 per cent stake from IDBI Bank for a complete money consideration of Rs 5.8 billion (Rs 580 crore).
After the acquisition, the shareholding of Ageas elevated from 49 per cent to 74 per cent. Federal Bank continues to carry the remaining 26 per cent, whereas IDBI Bank has exited as a shareholder however stays a distribution associate.
“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. IDBI Bank’s shareholding in AFLI now stands at nil,” the financial institution stated in a inventory change submitting.
“Further to the announcement by our finance minister in Budget 2021 to increase the permissible FDI limit from 49 per cent to 74 per cent in insurance companies, we are proud to become the first life insurance company in the country to have 74 per cent stake held by our foreign shareholder Ageas,” stated Vighnesh Shahane, MD and CEO, Ageas Federal Life Insurance.
“Despite the various challenges because of the pandemic, as well as prior uncertainty around the stake sale, we have delivered superior results, achieved new milestones and have declared a profit for 10 consecutive years,” Shahane stated.
Founded in 2007, AFLI had first declared a revenue in 2012- 13. The insurer’s complete premium rose by 13 per cent to Rs 2207 crore in 2021-22 pushed by a 27 per cent rise in particular person new business premium and 5 per cent rise in renewal premium.