European insurance major Generali on Thursday said it was set to become the majority shareholder in its general and life insurance joint ventures (JVs), Future Generali India Insurance Company Ltd. (FGIICL) and Future Generali India Life Insurance Company Ltd.
Future Enterprises Ltd. agreed to sell a 25% stake in FGIICL to Generali Participations Netherlands N.V., for ₹1,252.96 crore in cash. Generali also acquired an option to buy out the remaining interest in the general insurance venture.
Generali said the decision to increase its stake in the JV was in line with its strategy to strengthen its presence in fast-growing markets.
In the life insurance JV, Generali had earlier agreed to invest up to ₹330 crore in tranches. With the investment and purchase of the 16% stake held by Industrial Investment Trust Ltd., Generali will become controlling shareholder in FGILICL.
“With an expected double-digit annual growth rate, India’s insurance market offers considerable opportunities,” said Generali Group’s CEO International Jaime Anchustegui Melgarejo.