UK-headquartered insurance broker Howden will increase its stake in its Indian arm from 49% to 100%. The group, the largest non-US broker globally, has received regulatory approval for the transaction.
Speaking, Howden India Insurance Brokers chairman Praveen Vashishta said that the increase in stake to 100% would allow the company to pursue inorganic growth by bringing in more capital. Although Vashishta did not divulge the deal size, the transaction is expected to be in millions of dollars given that the company ended March 2022 with Rs 125 crore of income and Rs 34 crore of earnings before interest, taxes, depreciation and amortisation (ebitda).
The company now targets to double business organically by FY26 and achieve Rs 250 crore of income after increasing employee headcount from 250 to 400. In India, Howden has built a reputation of being an arranger of speciality insurance covers.