IDBI Bank sells 23% stake in its life insurance arm to Ageas for Rs 507 cr

With this, Ageas will hold 49% in the insurance venture, which is being rebranded as Ageas Federal Life Insurance Company

Private lender IDBI Bank has concluded the sale of 23 per cent stake in IDBI Federal Life Insurance Company Ltd (IFLI) to Ageas Insurance International NV for a consideration of Rs 507 crore. With this, Ageas will hold 49 per cent stake in insurance venture, which is now being rebranded as Ageas Federal Life Insurance Company.

On August 6, 2020, IDBI Bank inked a pact to sell up to 27 per cent in IDBI Federal Life to venture partners Ageas and Federal Bank. Of the total shareholding to be divested, 23 per cent was to be sold to Ageas while Federal Bank would acquire up to four per cent stake.

 

At present, IDBI Bank has completed the sale of its 23 per cent stake to Ageas pursuant to receipt of the requisite regulatory approvals, IDBI said in a statement.

Following the stake sale, IDBI bank would hold 25 per cent stake in company. The stake will come down to 21 per cent after it concludes the sale of an additional four per cent stake to Federal Bank. The sale of stake became necessary after Life Insurance Corporation of India became promoter of bank.

IDBI Bank would continue its business association with Ageas Federal Life Insurance as one of their channels to sell insurance policies and also have a seat on the board.