XL Group to buy 20% of Mahindra Insurance BrokersOctober 18 2017 by InsuranceAsia News Staff
XL Group is in the process of acquiring a 20% stake in Mahindra Insurance Brokers.
The insurance broker’s value will reportedly be pegged at around Rs13 billion (US$200 million) as a result of the deal, implying a price tag of US$40 million for the XL stake.
Mahindra Insurance Brokers is a unit of Mahindra & Mahindra Financial Services, catering to rural and semi-urban India — markets with low insurance penetration.
According to the company’s statement, an existing shareholder in Mahindra Insurance Brokers, LeapFrog Financial Inclusion Fund, through its subsidiary Inclusion Resources Private (IRPL), currently holds a 15% equity stake in Mahindra Insurance Brokers.
It will buy an additional 5% stake in Mahindra Insurance Brokers from Mahindra Finance, in the process raising its total equity stake in Mahindra Insurance Brokers to 20%.
It will then immediately sell the entire capital of IRPL to XL Group, subject to having followed regulations.
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