Ageas Federal Life Insurance (AFLI) announced that after Belgium-based Ageas Insurance International successfully acquired the 25% investment in the life insurance joint venture (JV) from IDBI Bank, it has become the first life insurance firm in India with a 74% stake held by a foreign partner. For a total cash consideration of Rs 580 crore, Ageas has bought the extra 25% ownership of IDBI Bank in Ageas Federal Life Insurance.
Ageas owns 74% of an Indian life insurance company: Key Points
- Ageas’ ownership of the JV increased from its prior 49% to 74% after purchasing the extra 25% stake.
- While IDBI Bank ceased to be a stakeholder, Federal Bank still owns 26% of the life insurance.
- IDBI Bank had signed into a share purchase agreement (SPA) to sell Ageas Insurance International NV its whole stake of 200 million equity shares in AFLI (Ageas).
- In accordance with the receipt of the necessary regulatory clearances, IDBI Bank has concluded the selling transaction of its whole investment of 20,00,000 equity shares in AFLI. The bank stated in a stock exchange statement that its ownership in AFLI is now NIL as a result of this sale.
About Ageas Federal Life Insurance (AFLI):
Since it first announced a profit in FY13, AFLI, which was founded in 2007, has had ten years in a row of profitability.Due to a 27% increase in individual new business premium and a 5% increase in renewal premium, its total premium increased by 13% to Rs 2,207 crore in FY22. In FY22, it reported a net profit of Rs 94 crore.
Important Takeaways For All Competitive Exams:
- MD & CEO of Ageas Federal Life Insurance: Vighnesh Shahane