IDBI Bank completes sale of entire stake of Ageas Federal Life Insurance

Ageas Insurance International has completed the acquisition of a majority stake in its Indian joint venture Ageas Federal Life Insurance (AFLIC), picking up 25 per cent stake of IDBI Bank for Rs 580 crore.

With this, it has become the first foreign partner in the Indian life insurance sector to own a majority stake of 74 per cent.

In the non-life segment, it was Italy’s financial services major Generali which raised its stake in Future Generali India Insurance to 74 per cent in May this year.

Last fiscal, the Indian government allowed foreign players to raise their stakes in Indian joint venture insurance firms up to 74 per cent from 49 per cent earlier as a move to attract investment as well as to increase insurance penetration in the country.

“Ageas completes the acquisition of a majority stake in the Indian life insurance joint venture Ageas Federal Life,” Ageas said in a release.

The global insurer said it has acquired the additional 25 per cent stake (from IDBI Bank) for a total cash consideration of Rs 5.8 billion (EUR 73 million).

“With this transaction, Ageas increases its interest in the joint venture that it has operated to date together with IDBI Bank and Federal Bank to 74 per cent.”