Ageas Insurance International NV, Europe’s leading insurance group, has acquired 40% in Royal Sundaram General Insurance. The agreement was signed between Sundaram Finance and Ageas Insurance International in November 2018, following the approvals given by the Insurance Regulatory and Development Authority of India (IRDAI) and other regulators.
As part of the agreement, Ageas has acquired 40 per cent of the share capital of Royal Sundaram General Insurance Co Ltd. The total value indicated for the deal was Rs.1,520 crore.
Subsequent to the divestment, Sundaram Finance Ltd now holds 50 per cent, and some of the existing Indian shareholders hold the balance 10 per cent in Royal Sundaram.
“Like Sundaram Finance, Ageas is a retail-focussed company with a strong Asia presence. As part of the go-to-market strategy of the JV firm, we are confident of tapping into their expertise and leveraging some of their best practices in claims management, automation in underwriting and analytics,” said TT Srinivasaraghavan, Managing Director, Sundaram Finance Ltd.
The new JV will retain the existing ‘Royal Sundaram’ brand name. “The existing management team will continue at Royal Sundaram. Two executives from Ageas will be joining the Royal Sundaram team to work in specific areas where they can add value to the business, he said.
Ageas is already present in the Indian life insurance business through IDBI Federal Insurance Co Ltd.