ICICI Lombard to acquire AXA General Insurance, becomes country’s third largest insurance company

ICICI Lombard General Insurance Company Limited and Bharti Axa General Insurance Company Limited have announced on Saturday that they are bringing their insurance business together through a share swap deal, the entity that will form the third-largest insurance unit in the country after the deal. The scheme of arrangement with Bharti Axa General Insurance Company has been approved after the board meetings held on Friday. ICICI Lombard will acquire Bharti AXA General Insurance under the arrangement plan.

Based on the share exchange ratio recommended by independent evaluators, Bharti Axa shareholders will receive two shares of ICICI Lombard on 115 shares of Bharti AXA. Currently, promoter ICICI Bank Limited (ICICI Bank Ltd) has a 51.89% stake in ICICI Lombard, while the rest is with the public. After the proposed deal, the promoter’s stake will fall to 48.11%.

At present, Bharti Enterprises has a 51% stake in Bharti Axa General. While the French-based JV partner AXA has a 49% stake. ICICI Lombard is a listed insurance company and after the deal, Bharti and AXA will be public shareholders in the joint entity.

In a joint media release, the two companies said that the non-life insurance company, which was formed after the proposed acquisition, is expected to have a total annual premium income of at least Rs 16,447 crore with a combined 8.7% market share.

Caleb Lombardo
Caleb Lombardo
Caleb is an experienced cryptocurrency analyst, day-trader, and enthusiast. Since 2015, Caleb has been involved in various cryptocurrency projects as an advisor and executive. His passion for cryptocurrency and blockchain technology led him to the acquisition of Stackzea.