Ageas Federal Life Insurance becomes first life insurer with foreign partner as majority stakeholder
New Delhi: Ageas Federal Life Insurance on Thursday said its partner Ageas Insurance International has raised its stake to 74 per cent, making the company the country's first life insurer having a foreign partner as majority shareholder.
Belgium-based shareholder Ageas Insurance International NV has completed the acquisition of the remaining 25 per cent stake from IDBI Bank, taking its overall stake to 74 per cent from the earlier-held 49 per cent, a company release said.
In non-life insurance space, Future Generali India Insurance is the only company in which the Italian financial services major Generali increased its stake to 74 per cent in May this year.
Increased investments from overseas partners came after the government last fiscal allowed foreign shareholding in Indian insurance joint ventures up to 74 per cent from 49 per cent earlier.
Announcing the completion of the majority shareholding in Ageas Federal Life Insurance, the company said it is the first life insurer in India in which the foreign partner holds 74 per cent stake.
The new shareholding arrangement comes in the backdrop of the exit of IDBI Bank from the original tripartite joint venture between the state-owned lender, private sector Federal Bank and Ageas.
Federal Bank continues to hold a 26 per cent stake in the joint venture. IDBI Bank exits as a shareholder but remains a distribution partner, the insurer said.
Vighnesh Shahane, MD & CEO, Ageas Federal Life Insurance, said: "Despite the various challenges due to the pandemic as well as the prior uncertainty around the stake sale, we have consistently delivered superior results, achieved new milestones, and declared profit for ten consecutive years." Founded in 2007, Ageas Federal recorded profit for ten consecutive years beginning FY13.
The company's total premium rose by 13 per cent to Rs 2,207 crore in the fiscal year ended March 2022, and it posted a net profit of Rs 94 crore during the year.