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

Patrick Rastiello joins Ardonagh Specialty to lead North America Reinsurance expansion

Ardonagh Specialty has appointed Patrick Rastiello as CEO* of its North American reinsurance operations.   Patrick will be responsible for building Ardonagh Specialty’s US reinsurance...

Global Markets Overview: February 2024

In this Global Markets Overview, we explore our global outlook and share what we think it means for 2024. As...


Risk Management Trailblazer Presented with RIMS Highest Honor for Lifetime Achievement in Risk Management  NEW YORK (February 13, 2024) – At the RIMS New Zealand and Pacific Island...

Insurer’s Lease More Than Doubles Its Chicago Office Space

Sompo International Plans Move to 46-Story Tower at 155 N. Wacker A global specialty insurance provider is more than doubling the size of its Chicago office in a move a few blocks north, bucking the trend...

Haynes and Boone, LLP is pleased to announce that Peter A. Halprin has joined the firm as a Partner

Haynes and Boone, LLP is pleased to welcome Insurance Recovery Partner Peter A. Halprin to the firm’s New York City office. A Chambers USA-ranked attorney, Peter joins from Pasich LLP, where...

LIO Specialty Launches Revolutionary Online Portal for Life Science Insurance Solutions

Leading the Excess and Surplus Lines Market with Innovative Coverage for Cannabis and Nutraceutical Industries  West Conshohocken, PA– LIO Specialty Insurance Company proudly announces the launch...