Mumbai: ICICI Lombard Private sector lender is set to acquire Bharti Axa General Insurance is an all stocks deal valued between Rs 2,500 to Rs 2,800, according to people familiar with the matter.
The sources added that announcements on this matter could be issued in the next two weeks. Emails to Bharti Enterprises, the largest shareholder of Bharti Axa Insurance, ICICI Lombard didn’t elicit an immediate response.
The proposed merger will require requisite approvals from the Insurance Regulation and Development Authority (IRDAI) to proceed.
The full acquisition of stock is likely to see AXA, the French insurance and asset management company, which currently owns a 49 percent stake in the insurance company, exit their India business.
According to IRDAI data, the total direct premiums of Bharti-AXA underwritten in the first quarter of FY21 declined by 12 percent to Rs 508.92 crore, compared to the same period last year.
Meanwhile, ICICI Lombard, the largest public sector private insurance company in the country with an 8.4% market share, experienced a 29% increase in its net profit for the June quarter. IRDAI data showed that gross premium collections decreased 5.3% compared to last year in the same period.
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