AXA and Bharti have announced an agreement to combine their non-life insurance operations in India, Bharti AXA General Insurance Company Limited, into ICICI Lombard General Insurance Company Limited.
Following the transaction, the combined entity will be ranked number three amongst non-life insurers in India, with an increased market share of ca 8.7%.
AXA and Bharti’s ownership of Bharti AXA GI is 49% and 51%, respectively.
Under the terms of the agreement, AXA and Bharti will receive a total of 35.8 million shares of ICICI Lombard on closing, which would represent €521 million at current market value, and an implied HY 2020 P/BV multiple of more than 5 times.
The transaction is expected to result in a one-time positive net income impact of approximately €0.2 billion in AXA’s FY 2021 consolidated financial statements.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by the fourth-quarter of 2021.
