Generali has acquired the entire stake of around 16% held by Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL), raising its share in FGIL from 49% to 68%. Generali said it may further increase this to 71% by the end of this year.
Generali is the first international insurer to be a majority shareholder in an Indian joint venture since new laws in the country took effect. Last year, the government implemented the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector from 40% to 74%.
The deal is aligned with Generali’s ‘Lifetime Partner 24: Driving Growth’ strategy, strengthening its position in fast-growing markets and affirming the Group’s commitment to deliver profitable growth, while creating value for customers.
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.”
Concurring, Rob Leonardi, Regional Officer, Generali Asia, said that by becoming the largest stakeholder in FGIL, Generali is now able to consolidate its position in the Indian life sector and create more value for its customers, agents, partners and distributors.
The acquisition of the additional shares has received the approval of the relevant regulatory and competition authorities, Generali said in a statement.