Generali increases JV investment in “high potential” IndiaJanuary 2 2019 by InsuranceAsia News Staff
Generali Group has finalised an agreement to increase its stake in its Indian insurance joint venture with Future Group to 49% from 25.5%.
Generali is paying approximately €120 million (US$137.3 million) to expand its ownership in Future Generali India Life Insurance, Future Generali India Insurance and the newly established distribution joint venture FG&G Distribution Private.
“The new Generali strategy is focusing on high potential insurance markets. India will play a significant role in our expansion plan in Asia,” said Jaime Anchustegui Melgarejo, chief executive of the international division at Generali.
“The strengthening of our partnership with Future Group is a clear signal of the commitment of Generali Group to further invest in the development of partner customer systems with the ambition to expand customer reach,” he added.
Kishore Biyani, group chief executive of Future Group, said: “We are committed to making our insurance businesses more customer-focused and together with Generali’s global expertise, we believe that we can create unique and differentiated platforms in India.”
A change in regulations to allow foreign firms to own 49% stakes in India has seen a flurry of foreign firms increasing their stakes in Indian joint ventures over the last three years, including Axa and Allianz.
Meanwhile, Ageas signed an agreement in November to acquire 40% of the share capital of Chennai-headquartered Indian P&C insurer Royal Sundaram General Insurance, a subsidiary of Sundaram Finance, for €186 million (US$210 million).
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