Generali takes majority stake in Indian JVs
Generali is investing around $190.47m in two joint ventures.
Generali will become the majority shareholder in both its life and property and casualty (P&C) joint ventures in India.
In the P&C business, Generali will acquire 25% of the shares of Future Generali India Insurance (FGII) from Future Enterprises limited for a consideration of €145m ($161.5m) Generali will have a total stake of 74% in FGII.
In the life business, Generali will acquire Industrial Investment Trust Limited’s stake of 16% in Future Generali India Life (FGIL) for €26 ($28.97m). With this, Generali will hold a stake of 68% in FGIL which may increase to 71% by the end of 2022, following further preferential allotment of shares.
According to Generali, this is in line with their ‘Lifetime Partner 24: Driving Growth’ strategy to strengthen Generali’s position in the industry and highlights the group’s commitment to deliver profitable growth whilst creating value for its customers.
In March last year, the Indian government increased the Foreign Direct Investment limit in the insurance sector from 49% to 74%.