Generali says to become majority shareholder in its India Life, non-life JV
ROME (Reuters) - Italy's Generali 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)
