According to sources ICICI Lombard is all set to acquire Bharti AXA General Insurance. Currently, promoters of ICICI Lombard General Insurance hold 51.89% in the company and rest with the public. After the proposed deal, promoters’ stakes will decrease up to 48.11%. In a share swap deal, non-life insurer ICICI Lombard General Insurance Company will acquire the business of Bharti AXA General Insurance Company Ltd. Both Bharti and AXA will be public shareholders.
ICICI Lombard is going to be the third-largest non-life insurer and it also will be the combined entity with a market share of 8.7% on a Pro-forma basis. They didn’t disclose their financial details yet, but they disclosed their deal, which valued at Rs 4,000 to 4,500 crore.
ICICI Lombard in its press release said that, based on the share exchange ratio recommended by independent values and accepted by the respective boards of ICICI Lombard and Bharti AXA, the shareholders of Bharti AXA shall receive two shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date on which the Scheme of Arrangement is approved by the board. This will be an important step in the journey of ICICI Lombard and we are much sure that this transaction becomes value accretive for our shareholders said by the Bhargav Dasgupta, MD & CEO of ICICI Lombard General Insurance.
Dasgupta added that “We are confident about the capabilities and strengths that Bharti AXA going to add on our franchise. The company has a brilliant employee base with qualified cultural fit, and that we anticipate to welcoming them to the ICICI Lombard family.
Bharti AXA General Insurance is a joint venture between Bharti, in India, it is the largest leading business group which have an interest in telecom, agriculture business, and retail, and AXA, which is the most leading insurance and asset Management Company among the world. The joint venture company has a 51% stake from Bharti and a 49% stake of AXA.
Currently, promoters of ICICI Lombard General Insurance hold 51.89% in the company, while rest is with the general public. Promoter’s stake will come down to 48.11% only after the proposed deal.
Insurance Regulatory and Development Authority of India shows the data that ICICI Lombard has underwritten gross direct premium up to Rs 4,391.29 crore between April to July this year and also has a market share of 7 .79%. On July 2020 Bharti AXA General Insurance has a market share of 1.44%.
Rakesh Bharti Mittal, chairman of Bharti AXA General Insurance, said that “We are so proud about the partnership between Bharti and AXA, and it going with all successful way, in laying down a strong foundation in the domestic insurance landscape. Over the past few years, our business having continuous profit. We are so delighted about our business, that amalgamation with ICICI Lombard, through this we can bring greater business synergies and obtain more value for all stakeholders.”
