Indian financial services firm Edelweiss Group has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to divest its insurance broking arm to Gallagher.
Gallagher revealed its intention to purchase the remaining shares of Edelweiss Insurance Brokers Limited back in July, following a minority investment in 2019, but the deal remained subject to regulatory approval.
With IRDAI having now given the green light, the business will transition to the Gallagher brand over the coming months.
Following the transaction, Edelweiss Group will continue to focus on growing its life and nonlife insurance businesses.
“At Edelweiss, we have always been driven by long-term value creation, seeding, nurturing businesses, forging partnerships at the opportune time to build scale,” said Edelweiss Chairman Rashesh Shah.
“We have enjoyed an excellent relationship with the Gallagher team and we believe that they will add lot more value to the business and give it a global edge,” he continued.
“This move also brings to us the flexibility to reallocate capital, which post this transaction and the strategic partnership in our Wealth Business, is ample. We now have adequate capital and a stronger balance sheet and look forward to scaling up our fast-growing life and non-life insurance businesses, as India turns a corner post the pandemic.”
