Asia & Oceania

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:


ad ad

Related articles

Hippo Launches Homeowners Association Insurance Offer, Bringing Bespoke Protection to Entire Homeowner Communities

PALO ALTO, CALIF. (PRWEB) JULY 22, 2021 Hippo, the home insurance group that created a new standard of care and protection for homeowners, today announced its expansion into Commercial Insurance....

Dennis Mahoney appointed as Bermuda Chairman

London,  21 July 2021  Oneglobal Broking (Oneglobal) is pleased to announce that Dennis Mahoney will join Oneglobal Bermuda as Chairman, with immediate effect. Dennis is a past President of...

WTW Unloads Northern Ireland Portfolio

Global Risk Partners (GRP) has entered into an agreement with Willis Towers Watson (WTW) to acquire WTW’s commercial risk and broking business in Northern Ireland. On completion, the £57m gross written...

How Bajaj Allianz General Insurance has benefited from adopting DevOps

Bajaj Allianz General Insurance has developed an Enterprise Platform, to lay foundation of the DevOps strategy. DevOps has benefited Bajaj Allianz General Insurance to effectively and quickly collaborate...

European Commission Approval a Major Step for Pending Aon and Willis Towers Watson Combination

Download this Press Release (PDF) - Approval satisfies a significant condition for the completion of the proposed combination. - Demonstrates continued progress toward obtaining regulatory clearances...

The Hartford Names Tony Paschali Head Of Southeast Division Field Sales And Underwriting For Middle And Large Commercial

HARTFORD, Conn.--(BUSINESS WIRE)-- The Hartford has appointed Tony Paschali head of the Southeast Division for the company’s Middle and Large Commercial Insurance business. Paschali now leads...