Fairfax buys stake in rival of Indian partnerAugust 30 2017 by InsuranceAsia News Staff
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.
- June 28
Board chairman Richard Li is said to be laying the groundwork for a potential listing after five years of growth.
- June 27
The investment sees the Indian insurer become the latest startup to achieve unicorn status.
- May 11
The Hong Kong-listed insurer co-led the funding round in a Tencent-backed Chinese online healthcare solutions platform.
- May 2
True North and its global sponsors have made a rumoured US$400m bid for a 40% stake.