Italian financial services firm Generali said on Wednesday that it has become a majority shareholder of the Indian life insurance joint venture following all regulatory approvals.
The company has completed the acquisition of its entire stake of around 16 per cent held by Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) and subscription of additional shares in FGLI following receipt of all required approvals from relevant regulators and competition authorities.
Generali currently holds about 68 per cent stake in FGIL, which is likely to increase further to 71 per cent by the end of 2022, following further share subscriptions, the company said in a statement.
Generali is the first player among international insurers to increase its majority shareholder position in Indian joint ventures since the new foreign ownership limit.
Last year, the government amended the Insurance Amendment Bill, 2021, to increase the foreign direct investment (FDI) limit in the insurance sector to 74 percent from 49 percent.
The agreement is expected to strengthen Generali’s position in a fast -growing market and reaffirm the Group’s commitment to delivering profitable growth while creating value for customers.
Jaime Anchústegui Melgarejo, Generali International CEO, said, “This acquisition is in line with Generali’s strategy to strengthen its position in a high -potential market.
We look forward to deepening our presence in India, becoming a Lifetime Partner to a growing share of Indian customers. ”
With this, the debt -laden Future Group has reduced its holdings from its Future Generali India Insurance insurance business for a cash consideration of Rs 1,252.96 crore as part of its asset monetization plan to reduce debt.