Private equity firm Access Group today said it has closed the first tranche its Rs 55-crore investment in Alliance Insurance Brokers.
Separately, sources told PTI that Access Group has picked up a 26 per cent stake in the company. However, it couldn't be confirmed from either Access group or Alliance Insurance.
The PE firm said it has closed the first tranche of its Rs 55-crore investment in Alliance Insurance, which will use the fund for business expansion and venturing into the large SME and retail space.
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Alliance is an independent general insurance broking house handling Rs 400 crore of premia annually. It was founded in 2003 by S V Thakkar and Aatur Thakkar with an investment of Rs 50 lakh.
It provides structured solutions both on the insurance as well as reinsurance broking front to corporates. The firm primarily focuses on the B2B insurance services and insures over 1,300 corporate clients operating across 11 cities.
Alliance operates in the manufacturing, infrastructure , power and financial/non-financial services spaces.
"We are confident of crossing Rs 1,000 crore of premia in the next three years. We believe Access' investment in Alliance will enhance our reach and strengthen relationships manifold," Alliance Founder-Chairman SV Thakkar said.
"Funds raised by this investment will not only assist us in expanding our corporate business across the country but will also allow us to venture into the large SME and retail space which requires simple yet effective solutions," he said.
General insurance broking business has grown consistently over the past five years at a rate of over 25 per cent per annum following favourable changes in regulation.
"We are excited about Alliance's prospects, given the strength of its management team and underwriting and claims processes. We believe we have strong ability to assist the team in its growth path, through our network of operating partners and investors," Access India Fund Managing Partner Sangeeta Modi said.