ICICI Lombard General Insurance Company, owned by ICICI Bank, has received an in-principle approval from the Insurance Regulatory and Development Authority of India (IRDA) to the draft scheme of arrangement between itself and and Bharti AXA General Insurance Company. The deal will create India’s third largest non-life insurance company, with a combined annual premium of ₹ 16,447 crore and a market share of nearly 8.7 per cent.
“We would like to inform you that the Insurance Regulatory and Development Authority of India (‘IRDAI’) has granted in-principle approval under Section 35 to 37 of the Insurance Act, 1938….with respect to the said transaction,” ICICI Lombard General Insurance Company said in a regulatory filing to the stock exchanges.
The board of ICICI Lombard had approved the scheme of arrangement at its meeting held on August 21, 2020.
Bharti Enterprises currently owns 51 per cent and French insurance company AXA has a 49 per cent stake in Bharti AXA General Insurance. The shareholders of Bharti AXA will receive 2 shares of ICICI Lombard for every 115 shares of Bharti AXA held as on the date of approval of the ‘scheme of arrangement’ by the board of ICICI Lombard and Bharti AXA. Bharti AXA General Insurance would cease to be a going concern, post the demerger.