CHENNAI : Belgium-based Ageas Insurance International NV will acquire 40 per cent share capital in Chennai-based Royal Sundaram General Insurance, promoted by Sundaram Finance Limited, for `1,520 crore.Both the companies signed an agreement in this regard on Wednesday. Presently, Sundaram Finance holds 75.9 per cent share in Royal Sundaram, but it proposes to divest 25.90 per cent shares and retain the remaining 50 per cent post the transaction, according to statement released by the Sundaram Finance on Wednesday.
However, the transaction is subject to certain conditions to close including approvals from the Insurance Regulatory and Development Authority of India (IRDAI) and other regulators.
The transaction is expected to close in the first quarter of 2019.
“Over the past 18 years, Royal Sundaram has built a sterling reputation in the market for its customer service excellence, notably in claims management. We are delighted to be partnering with Ageas, whose global experience, including in several Asian countries, will be an asset,” TT Srinivasaraghavan, managing director, Sundaram Finance, said.
Meanwhile, Bart De Smet, CEO of Ageas, said, “Partnering with Sundaram Finance, a well-established company with vast knowledge of the Indian insurance market offers us a great opportunity to benefit from the potential of what is one of the world’s largest economies with an insurance industry that is expected to grow significantly in the coming years.”Royal Sundaram is one of the top 10 players in the privately owned Indian general insurance market with strong positions in motor and health insurance.