Australia's QBE to buy Prism Johnson's 51% stake in Raheja QBE for ₹324 cr

The Australian insurer will fully own the general insurance company after acquisition of 51% stake

Australia-based QBE Insurance group is set to acquire the remaining 51 per cent stake in Raheja QBE General Insurance from its Indian partner Prism Johnson for ₹324 crore, subject to regulatory approvals. This would make QBE Insurance the sole owner of the company. This will be the first transaction in which a foreign insurer will own 100 per cent of a domestic insurance company, after the government allowed full foreign direct investment (FDI) in the insurance sector.

 

Raheja QBE is a joint venture between QBE Insurance and Rajan Raheja group-owned Prism Johnson Limited, with the latter owning a 51 per cent stake. “The consideration for the sale of the company’s shareholding held in the material unlisted subsidiary company is ₹324 crore,” Prism Johnson said in an exchange filing.

 

Total consideration to be received by the company for the proposed transaction is subject to certain adjustments on the completion of the proposed transaction, in the manner set out in the Share Purchase Agreement (SPA), it said.

 

The proposed transaction is estimated to be completed on or before nine months from the execution date of the SPA, which was March 2, 2026.

 

“The proposed transaction will result in the termination of the company’s joint-venture with Australia’s QBE group in the general insurance business in India, and existing Shareholders Agreement. Upon completion of the proposed transaction, RQBE will cease to be a subsidiary of the company,” Prism Johnson added.

 

The company obtained its licence in December 2008, wherein Prism Johnson had 74 per cent stake and the remaining 26 per cent stake was owned by QBE. However, post the change in FDI limit, the international insurer increased its stake to 49 per cent for nearly ₹111 crore in 2015.

 

In July 2020, Paytm had signed an agreement to acquire 100 per cent stake of Raheja QBE General for ₹290 crore. However, the deal was later terminated after both the parties failed to consummate within the time period envisaged. 

 

In order to maintain its 51 per cent stake and maintain the general insurer’s solvency margin, Prism Johnson invested ₹20.41 crore in July 2024.

 

As on March 31, 2025, Raheja QBE General Insurance had a net worth of ₹253.66 crore and a revenue of ₹498.91 crore.

 

The announcement marks the end of an 18-year partnership between the two companies. “Operations and service standards will be maintained as the transaction is reviewed by the Insurance Regulatory and Development Authority of India (Irdai) and further details will be provided in due course,” Raheja QBE General Insurance said.

 

There has been growing interest among foreign insurers for a stake in the Indian insurance sector. Recently, Mahindra group and Canada-based Manulife announced plans to enter the Indian life insurance segment, with a 50:50 joint venture and total commitment of ₹3,600 crore from each shareholder. Separately, the UK-based Prudential group partnered with HCL group to establish a standalone health insurance company. Angel One has announced plans to enter a joint venture with LivWell to establish a digital-first life insurance company.

 

One of the major deals announced in the industry was the 50:50 joint venture between Jio Financial Services and Allianz group to enter the reinsurance market. Allianz group had exited its two insurance joint ventures with Bajaj group with the latter acquiring the entire stake for ₹24,180 crore.

 

Additionally, IndusInd International Holdings (IIHL) also completed its acquisition of Reliance Capital, which owns two insurers — Reliance Nippon Life Insurance and Reliance General Insurance. Swiss insurer Zurich Insurance had also acquired a 70 per cent stake in Kotak Mahindra General Insurance for $670 million from Kotak Mahindra Bank.