Ageas acquires majority stake in Indian life insurance joint venture Ageas Federal Life

Ageas acquires majority stake in Indian life insurance joint venture Ageas Federal Life

Ageas today announces the signing of an agreement to acquire IDBI Bank’s 25% stake in the Indian life insurance joint venture Ageas Federal Life Insurance Company Ltd. (AFLIC).

With this transaction, Ageas will increase its stake in the joint venture it currently operates with IDBI Bank and Federal Bank to 74%. The Federal Bank maintains its 26% stake in AFLIC. IDBI exits as a shareholder but remains a distribution partner. This transaction is a second step for Ageas after increasing its stake from 26% to 49% in December 2020. (read the corresponding press release)

This investment is in line with Ageas’ strategy to expand in regions where it is already present and in promising markets with low insurance penetration rates and high growth potential, such as the Indian insurance market. life insurance.

Ageas will pay IDBI Bank a total consideration of INR 5.8 billion (EUR 69 million) in cash for the 25% stake in AFLIC.

The transaction is subject to regulatory approval and is expected to close in the second half of 2022.

This investment offers Ageas a unique opportunity to take control of one of its operating entities in Asia. I would like to take this opportunity to express my gratitude to the management and employees of IDBI Bank for their contribution over the past 16 years in bringing the company to where it is today: a highly valued life insurance business. and profitable. Our ambition is to continue this success with our long-standing partner Federal Bank, and to further develop the business in what is one of the world’s largest and fastest growing economies and a high potential market. long-term.
Hans De Cuyper, CEO of Ageas

At the end of 2006, Ageas, IDBI Bank and Federal Bank established the life insurance joint venture IDBI Federal Life Insurance Company Ltd. Since then, its gross inflows have steadily grown to reach EUR 247 million in 2021. In six years, the company has been and has continued to be profitable, generating a net profit of EUR 9 million in 2021.

ageas is a listed international insurance group, with a heritage of nearly 200 years, offering individuals and businesses Life and Non-Life insurance. As one of Europe’s largest insurance companies, Ageas focuses its business in Europe and Asia through a combination of wholly-owned subsidiaries and long-term partnerships with strong financial institutions and key distributors . Ageas ranks among the market leaders in the countries where it operates. It represents a workforce of approximately 40,000 people and declared annual inflows close to 40 billion euros in 2021 (figures at 100%).

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