Categories: Business

Ageas becomes first foreign business to own 74% of an Indian life insurance company

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.

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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.