Pincus is the frontrunner to acquire a minority stake in Indian insurer ICICI Lombard
General Insurance Co from Prem Watsa’s Fairfax
Financial Holdings, according to people familiar with the matter.
Toronto-based Fairfax, which owns 35 per cent of ICICI Lombard, is looking to sell a little more than a quarter of the company for as much as $1 billion, said the people, who asked not to be identified because the matter is private. Fairfax
needs to shrink its holding to appease regulators as it looks to launch a new joint venture in the country, the people said.
was selected alongside Carlyle
Group LP and Singapore's Temasek
Holdings Pte to submit final bids for the stake last month, they said. Talks between Warburg
are ongoing and may still fall apart, they said.
Representatives for Carlyle, Temasek, ICICI Bank and Warburg
Pincus declined to comment. Representatives for Fairfax
didn't respond to requests for comment.
is launching a new general insurance venture in India with Kamesh Goyal, a former executive at German insurer Allianz SE, the people said, and aims to hold 45 per cent of the new venture. To push forward with that plan, it must own less than 10 per cent of ICICI Lombard
under Indian regulations, one of the people said.
has been active in India, launching an investment vehicle, Fairfax
India Holdings Corp, two years ago to target acquisitions in the country. Fairfax
India has made several acquisitions, including a minority stake in the Bangalore International Airport last March.
The ICICI Lombard
stake would be the largest investment for New York-based Warburg
Pincus in India, according to data compiled by Bloomberg. In 2015, it acquired a stake in Piramal Realty Pvt for about $283 million, the data show.