Indian non-public sector lender Federal Financial institution has introduced plans to extend its stake in Ageas Federal Life Insurance coverage (AFLIC) to 30% from the present 26%.
This choice was authorized by the Federal Financial institution board, with a binding memorandum of understanding (MOU) with Ageas Insurance coverage Worldwide and AFLIC executed on this regard.
Beneath the phrases of the MOU, Federal Financial institution will purchase a further 4% fairness stake in AFLIC by buying 32 million shares at Rs30.45 ($0.36) every, totalling Rs974.4m.
The acquisition is pending approvals from the Reserve Financial institution of India and the Insurance coverage Regulatory Growth Authority of India.
It’s anticipated to be accomplished by 31 October 2025, contingent upon the execution of a share buy settlement between the events.
Ageas Federal Life Insurance coverage managing director and CEO Jude Gomes was quoted by numerous media businesses as saying: “We welcome this step by Federal Financial institution, which displays the continued belief and confidence in our partnership and enterprise progress potential.
“As we progress in direction of finishing this transaction, we stay dedicated to strengthening our bancassurance-driven mannequin, delivering customer-centric insurance coverage options, and reinforcing our presence in India’s dynamic insurance coverage sector.”
In Could final 12 months, Federal Financial institution fashioned a bancassurance partnership with Tata AIA Life Insurance coverage to supply quite a lot of life insurance coverage merchandise. The alliance is aimed toward utilising Federal Financial institution’s in depth community to boost Tata AIA’s market attain.
