Italian insurer Generali Group said it will increase its stake in Future Generali, its insurance joint venture with Future Group of India, to 49% from 25.5% at present at a cost of 120 mln euros (Rs 960 cr).
Future Group is a pioneer in the organized retail market in India and is by far the biggest player in the sector.
“We see large potential for growth in India as part of our strategic expansion plan in Asia, and we could not have a more experienced partner that knows and understands the local landscape,” said Frederic de Courtois, Generali Group CEO Global Business Lines & International.
“Generali’s proven expertise in insurance combined with Future Group’s unrivalled distribution in India is a truly winning combination. We could not be happier to strengthen our ties with them,” he added.
The transaction is expected to close during the second half of 2018 subject to regulatory approval and customary closing conditions.
The Italian company said India was a priority market for its long-term growth in Asia.
It said the India joint venture with Future Group generates gross written premiums of €375 million (Rs 3,000 cr) that, it said, have been growing steadily year after year.
“We have a lot of confidence in the unique , digital distribution capabilities of Future Group , and reinforcing our relationship will increase our ability to serve our customers in India,” it said.
The company has two joint ventures with Future Group — India’s largest retail company — called Future Generali India Life Insurance Company and Future Generali India Insurance Company, for non-life insurance.
Future Group Managing Director & Group CEO Kishore Biyani said the two companies would continue to leverage their relative strengths to drive business at the joint venture.
“Generali has been a partner of huge trust for us, and we are delighted to strengthen our partnership with them.”