Wednesday, April 25, 2018

Fairfax sells stake in Indian JV

Fairfax Financial sold 12.18% of its stake in Indian general insurance firm ICICI Lombard General Insurance to private equities Warburg Pincus, Clermont Group and IIFL Special Opportunities Fund.

The price tag was not revealed, but in a statement Fairfax said the transaction valued ICICI Lombard at Rs203 billion (US$3.15 billion), implying a deal value of Rs24.72 billion.

The company is a joint venture between ICICI Bank and Fairfax Financial. For the year ended March 31, 2015, it posted gross written premiums of Rs83.07 billion.

As of March last year, it issued over 15.80 million policies and settled over 1.62 million claims.

The sale is broken down as follows: Warburg Pincus-owned Red Bloom Investment bought 9%; Singapore-based private investment group Clermont Group bought 1.59% via Tamarind Capital; whereas, IIFL Special Opportunities Fund, managed by IIFL Asset Management, also bought 1.59%.

As a result of the deal, which is subject to governmental and regulatory approvals, Fairfax will have approximately 22% share ownership in the JV, while ICICI Bank owns 63%.

 

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