Generali becomes majority shareholder in Indian Life Insurance JV

Italian financial services firm Generali on Wednesday said it has become the majority shareholder of the Indian life insurance joint venture following all the regulatory approval.

The company has completed the acquisition of the entire stake of around 16 per cent held by Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) and the subscription of additional shares in FGLI, following receipt of all necessary approvals from the relevant regulatory and competition authorities.

Generali now holds a stake of around 68 per cent in FGIL, which may increase further to 71 per cent by the end of 2022, following further subscription of shares, the company said in a statement.

Generali is the first player among international insurers to step-up to a majority shareholder position in its Indian joint venture since the new foreign ownership cap came into effect.

Last year, the government amended the Insurance Amendment Bill, 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74 per cent from 49 per cent.

The deal is expected to strengthen Generali's position in fast-growing markets and confirms the Group's commitment to deliver profitable growth whilst creating value for customers.

Jaime Anchustegui 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."

With this debt-ridden Future Group has pared its stake from the insurance business Future Generali India Insurance for a cash consideration of Rs 1,252.96 crore, as part of its asset monetisation plans to pare debts.