Friday, September 22, 2017

Fairfax buys stake in rival of Indian partner

ICICI Lombard has agreed to allow its partner Fairfax to acquire a 49% stake in rival nonlife startup firm, Digit.

Fairfax will still retain its 10% stake in ICICI Lombard.

Bhargav Dasgupta, managing director and chief executive of ICICI Lombard, said the settlement with Fairfax has been amicable.

He said Fairfax maintains an optimistic outlook on India’s insurance industry and would have wanted to hike its holdings in ICICI Lombard to 49%.

Unfortunately, this arrangement would go against ICICI Bank’s stated objective of listing its insurance subsidiaries.

Left with no other choice, Fairfax had to look for another investment where it could have a 49% stake.

ICICI Lombard is India’s the first general insurer to file for an initial public offering.

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