Mumbai: Italian insurance company, Generali will change the Insurance Joint venture (JV) in India to be a majority subsidiary possessed by buying shares from the next group and industrial investment trust.
Generali said that it would pay 145 million euros to buy 25% additional shares in the future of India – JV with the future, where he has held 49% of the shares.
It has also signed an agreement to obtain all the pegs (around 16%) held by the Industrial Investment Trust (IITL) in the future of India Life (FGIL) for around 26 million euros, increasing ownership to 69% which can rise to 71.% At the end of 2022 through additional investments.
Future companies in separate notifications for exchanges say that it has agreed to sell 25% of the shares in the future of the General Indian Insurance Company (FGIICL) to Generali Dutch Participation (Generali) for RS 1,253 Crores, plus additional considerations that are linked to the date of the close of the transaction.
Generali is the first player among international insurance companies to increase the majority shares in Indian insurance joint ventures because the closing of new foreign ownership begins to apply.
“With the expected two-digit annual growth rate, the Indian insurance market offers a considerable opportunity, and we look forward to deepening our presence in this geography, becoming a lifelong partner for increasing Indian customers’ share,” said Jaime Anchustegui Mellam, CEO International, CEO , Generiali Group.
“Fel has received offers from potential buyers because the remaining 24.91% interest in FGIICL.
It also explores the option for the sale of 33.3% shares on JV life insurance and expects to complete the holding in the insurance joint venture in a time-bound method, “Fel said.
This adds that the funds will be used to fulfill their commitment based on a one-time restructuring plan for the Covid Hit Company.
In 2021 the government had increased FDI in insurance of up to 73% from 49%.