AXA and Bharti to combine their non-life operations in India into ICICI Lombard, in exchange of shares


August 21, 2020 – AXA and Bharti announced today that they have entered into an agreement to combine their non-life insurance operations in India, Bharti AXA General Insurance Company Limited (“Bharti AXA GI”), into ICICI Lombard General Insurance Company Limited (“ICICI Lombard”). The transaction will propel the combined entity to #3 amongst non-life insurers in India, with a market share of ca 8.7%*. AXA and Bharti’s ownership of Bharti AXA GI is 49% and 51% respectively.

Under the terms of the agreement, AXA and Bharti will receive a total of 35.8 million shares of ICICI Lombard on closing, which would represent Euro 521 million* at current market value, and an implied HY 2020 P/BV* multiple of more than 5 times. The transaction is expected to result in a one-time positive Net Income impact of approximately Euro 0.2 billion* in AXA Group’s FY 2021 consolidated financial statements.

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by 4Q 2021.

About Bharti AXA GI

Bharti AXA GI is the 11th largest non-life insurance private sector player* in India. The company has ca. 2,300 employees and has a pan-India presence through 152 branches. It distributes a comprehensive suite of retail and commercial non-life products through a multi-channel approach including motor dealers, agencies, the Airtel network (Bharti’s flagship company and one of the world’s largest telecom providers), bancassurance and digital. The Underlying Earnings of Bharti AXA GI recorded in AXA Group’s FY19 consolidated financial statements was Euro 1 million.

Apart from Bharti AXA GI, AXA’s presence in India also comprises of its 49% ownership in Bharti AXA Life, a life insurance joint venture with Bharti.

About ICICI Lombard

ICICI Lombard is one of the largest private sector non-life insurer* in India based on gross direct premium income in fiscal 2020. The company offers its customers a comprehensive and well-diversified range of products, including motor, health, fire, personal accident, crop, marine, engineering and liability insurance, through multiple distribution channels.

Share this Post:



Related articles

Aon launches Alternative Distribution platform in London

Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today announced the launch of Alternative Distribution – a London...

Combined Insurance Launches New Online Accident Product

Leading supplemental insurance carrier expands consumer access to affordable accident coverage CHICAGO, Oct. 19, 2020 /PRNewswire/ -- Combined Insurance, a Chubb company, announced today the...

Zurich offers new risk management app to help improve safety, quality and insights at construction job sites

Schaumburg, Ill., Oct. 19, 2020 – Zurich North America Insurance is offering a new construction app through Zurich Services Corporation designed to help its construction customers manage their risks and...

Cyber-related ransomware and business interruption top concerns of risk managers

Tenth year of Zurich’s Advisen Cyber Survey reveals a more sophisticated cyber insurance buyer:  percentage of respondents with cyber coverage increased from 34 to 80 percent since 2011 Schaumburg,...

AIR Worldwide Estimates Insured Losses for Hurricane Delta Will be Between USD 1 Billion and USD 3 Billion

BOSTON, Oct. 14, 2020 — Catastrophe risk modeling firm AIR Worldwide estimates that industry insured losses to onshore property resulting from Hurricane Delta’s winds and storm surge will range from USD...

Katherine Keefe Joins Marsh to Lead US Cyber Incident Management

Marsh, the world’s leading insurance broker and risk advisor, today announced the appointment of Katherine Keefe, a globally recognized leader in cyber incident response, as US Cyber Incident Management...