You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Edelweiss divests majority stake in insurance broking business

Capital Market 

Edelweiss Financial Services said that the Edelweiss Group has divested its majority stake in Edelweiss Gallagher Insurance Brokers (EGIBL), post approval from the Insurance Regulatory and Development Authority of India (IRDAI).

In first tranche, Edelweiss has transferred 61% stake in EGIBL to Arthur J. Gallagher & Co. (AJG). AJG now owns 91% of EGIBL, as a result of which EGIBL has ceased to be the subsidiary of the company.

The business will transition to the Gallagher brand in the coming months. Edelweiss Group will focus on growing its life and nonlife insurance businesses, which have been among the fastest growing in the industry.

Gallagher and Edelweiss had announced the transaction in July 2021, cementing a partnership that was forged between the two in May 2019, giving clients access to a larger suite of insurance products and services and scaling up the business significantly.

Rashesh Shah, Chairman, Edelweiss Group said At Edelweiss, we have always been driven by long-term value creation, seeding, nurturing businesses, forging partnerships at the opportune time to build scale. We have enjoyed an excellent relationship with the Gallagher team and we believe that they will add lot more value to the business and give it a global edge.

This move also brings to us the flexibility to reallocate capital, which post this transaction and the strategic partnership in our Wealth Business, is ample. We now have adequate capital and a stronger balance sheet and look forward to scaling up our fast-growing life and non-life insurance businesses, as India turns a corner post the pandemic, he added.

The Edelweiss Group is a diversified financial services companies, providing a broad range of financial products and services. Its businesses include asset management, NBFC, housing finance, asset reconstruction, wealth management, life insurance, general insurance and insurance broking.

The company reported a consolidated net profit of Rs 18.09 crore in Q1 FY22 as against a net loss of Rs 245.08 crore in Q1 FY21. Sales declined 13.83% to Rs 1625.53 crore in the quarter ended June 2021 as against Rs 1886.46 crore during the previous quarter ended June 2020.

The scrip advanced 0.86% to currently trade at Rs 81.70 on the BSE.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, October 19 2021. 12:25 IST