Generali has finished acquiring 16% of Future Generali India Life (FGIL), following regulatory approval.
The firm said it had bought what amounted to the entire stake held by Industrial Investment Trust, alongside additional shares. Generali now holds a stake of around 68% in FGIL, which may increase further to 71% by the end of 2022, following further subscription of shares.
Jaime Anchústegui Melgarejo, CEO international of Generali, said: “This acquisition is in line with Generali’s strategy to reinforce its position in a high potential market and we look forward to deepening our presence in India, becoming Lifetime Partners to an increasing share of Indian customers.”
The deal was originally signalled in January, alongside an acquisition of 25% of the P&C business of Future Generali India Insurance (FGII). Generali’s stated aim back then was to bring its total shareholdings in each unit to 74% and 68%.
The insurer agreed to buy the FGII shares from owner Future Enterprises Limited for a consideration of €145m, and to buy the FGIL shares held by Industrial Investment Trust Limited for €26m. The move followed an announcement by the Indian Government in 2021 that permits the increase of Foreign Direct Investment limit in the insurance sector from 49% to 74%.
It was in June 2018 and January 2019 that Generali made similar announcements of increasing its stakes in its Indian ventures.
Generali said that the deal is fully in line with the ‘Lifetime Partner 24: Driving Growth’ strategy, strengthening Generali’s position in fast-growing markets and confirms the Group’s commitment to deliver profitable growth whilst creating value for customers.
Rob Leonardi, regional officer of Generali Asia, said: “We’re excited that we are now able to consolidate our position in our Life Indian insurance JV and to create more value for our customers, agents, partners and distributors.”
Citigroup and Alvarez & Marsal acted as financial advisors to Generali on the transactions.