(Finance) – General has signed agreements to become the majority shareholder in its joint ventures in India, in the Life and Non-Life segments. Both transactions are subject to the approval of the relevant regulatory authorities.
In the Non-Life segment, Generali acquired 25% of the shares of Future Generali India Insurance (FGII) from Future Enterprises Limited for a consideration of approximately 145 million euros. Following the closing, Generali will hold a stake of approximately 74% in FGII. FGII is among the fastest growing non-life insurance companies in the market, with a diversified portfolio of products and distributors; in March 2021 (fiscal year end for Indian insurance companies), it recorded premium income of approximately 450 million euros.
In the Life segment, the Group has signed an agreement for the acquisition of the entire investment (approximately 16%) held by Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) for a consideration of approximately 26 million euros. FGIL recorded approximately 150 million gross premiums in March 2021. Furthermore, Generali will subscribe to a reserved capital increase involving FGIL shares (for an amount of approximately 21 million). Following the completion of the transaction and the completion of the reserved capital increase, Generali will thus hold a stake of approximately 68% in FGIL, which could rise to 71% by the end of 2022 following further reserved capital increases.
The operations are fully in line with the “Lifetime Partner 24: Driving Growth” strategy aimed at strengthening Generali’s position in high-growth markets and confirming the Group’s commitment to profitable growth by creating value for customers, in line with Generali’s ambition to be a Life Partner. The Group is the first player, among international insurers, to have acquired a majority stake in both of its Indian insurance joint ventures after the entry into force of the new limit on the shareholding of foreign companies.