Generali says to become majority shareholder in its India Life, non-life JV

Industrial Investment Trust

27/01/2022 06:56

ROME, Jan 27 (Reuters) - Italy's Generali  GASI.MI  said on
Thursday it would become the majority shareholder in both its
life and non-life Indian insurance joint ventures.
    Generali agreed to buy from its local partner, debt-laden
Future Group, 25% of the shares of Future Generali India
Insurance for 145 million euros ($163 million), bringing its
total stake to 74%. 
    Italy's largest insurer also agreed to acquire the whole
stake - or some 16% - held by Industrial Investment Trust
Limited in Future Generali India Life (FGIL) for around 26
million euros. It will also subscribe a preferential allotment
of shares in FGIL. 
    Both moves would take its holding in FGIL to 68%, which may
increase to 71% by the end of this year following another
preferential allotment.    
    The move, in line with Generali's strategy to position
itself in fast-growing markets, follows the decision in 2021 by
the Indian government which allows foreign companies to now hold
a share of a maximum of 74% in a local entity in the insurance
sector, up from the previous 49%. 
($1 = 0.8917 euros)

 (Reporting by Giulia Segreti; Editing by Kim Coghill)
 ((Giulia.Segreti@tr.com; +39.06.80307714;))