Industrial Investment Trust Limited (IITL) in Future Generali India Life (FGIL) for approximately €26 million. In addition, the insurance giant will register to a preferential allotment of shares in the life insurance JV worth approximately €21 million. Generali will own approximately 68 percent of FGIL following the transaction, which may rise to 71 percent at the end of 2022 due to additional preferential allotment of shares.
Generali claimed that it is the first overseas insurer to acquire a majority stake in both of its Indian insurance joint ventures following the implementation of new foreign ownership rules. The transaction, which is subject to regulatory approval, is part of Generali’s plans to invest on growth opportunities in the Indian market.
Jaime Anchústegui Melgarejo, CEO of Generali Group international, expressed hopes over the company’s progress. He said, “With an expected double-digit annual growth rate, India’s insurance market offers considerable opportunities, and we look forward to deepening our presence in this geography, becoming Lifetime Partners to an increasing share of Indian customers.”
Rob Leonardi, Generali Asia regional officer, expressed delight over the firm’s expansion. He said, “We are excited that we are now able to consolidate our position in our life and P&C insurance businesses, as it has always been our intention to increase our presence in India.” In the meantime, Future Enterprises announced that it has received offers for its remaining 24.91 percent stake in FGII from potential purchases. The Indian insurer also stated that it is weighing its options for divesting its 33.3 percent stake in the FGIL life insurance joint venture.
