Ageas acquires majority stake in Indian life insurance joint venture Ageas Federal Life-May 20, 2022 07:30

Ageas

Indian Life Insurance Joint Venture Ageas Federal Life

Ageas announced today that it has signed an agreement to acquire a 25% stake in IDBI Bank’s Indian life insurance joint venture, Ageas Federal Life Insurance Company Ltd. (AFLIC).

The transaction will increase Ageas’ stake in a joint venture currently affiliated with IDBI Bank and Federal Bank to 74%. The Federal Bank holds a 26% stake in AFLIC. IDBI will withdraw from its shareholding but remain a distribution partner. The transaction will be the second phase of Ageas after raising its stake from 26% to 49% in December 2020 (see related press release).

This investment is in line with Asia’s strategy to develop in promising markets with low insurance coverage and high growth potential, such as the Indian market and life insurance, as well as in existing regions.

Ageas will pay IDBI Bank a total of Rs 5.8 billion (€ 69 million) in cash for this 25% stake in AFLIC.

The transaction requires regulatory approval and is expected to close in late 2022.

This investment provides Asias with a unique opportunity to dominate one of the Asian entities. We would like to take this opportunity to thank IDBI Bank’s management and employees for their contributions over the past 16 years and for transforming the company into what it is today. Insurance company. Our goal is to work with our longtime partner Federal Bank to continue this success and develop the company in one of the world’s largest and most dynamic economies in a market that offers superior long-term potential. Is to continue. ..

Hans de Kaiper, CEO Ageas

Ageas, IDBI Bank and Federal Bank established IDBI Federal Life Insurance Company Ltd, a life insurance joint venture at the end of 2006. Since then, its total inflow has steadily increased to reach € 247 million in 2021. It is still today, with a net profit of € 9 million in 2021.

Ageas

Is a listed international insurance group with nearly 200 years of experience and know-how. We offer life and non-life insurance products to individual and professional clients designed to meet the specific needs of today and tomorrow. Ranked in Europe’s largest insurance group, Ageas focuses on Europe and Asia, which represent key parts of the global insurance market. We have successful insurance businesses in Belgium, UK, France, Portugal, Turkey, China, Malaysia, India, Thailand, Vietnam, Laos, Cambodia, Singapore and the Philippines. Through a combination of long-term partnerships between wholly owned subsidiaries and strong financial institutions and major distributors. Ageas is one of the market leaders in the countries in which we operate. In total, it employs approximately 40,000 people and achieved an annual inflow of nearly 40 billion euros (100%) in 2021.

Enclosed

  • PDF version of press release

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