360 ONE Asset today is set to acquire a 15% stake in Bharti AXA Life Insurance as part of a strategic investment and this is expected to unlock new avenues for innovation and expand Bharti AXA’s footprint in India’s competitive life insurance sector.
Bharti AXA Life Insurance, a wholly owned subsidiary of Bharti, will use investment from 360 ONE Asset to accelerate its plans to improve product offerings and cater to evolving consumer needs.
The deal is subject to regulatory approvals. The fresh capital infusion is expected to support the insurer expansion strategy.
Bharti AXA Life Insurance was previously a joint venture between Bharti Group and AXA Group, with Bharti Life Ventures Private Limited (BLVPL) holding 51% and AXA India Holdings owning 49%. In March 2024, BLVPL acquired AXA’s stake, gaining full ownership. BLVPL is equally owned by Bharti Enterprises Holdings Private Limited and Bharti Overseas Private Limited, which is fully controlled by the Mittal family. Promoters have been actively supporting the insurer through equity infusions of Rs 135 crore in FY24 and Rs 42 crore in Q1FY25.
Bharti AXA reported a solvency ratio of 1.64x as of June 30, 2024, slightly improving from 1.62x in March 2024 and remaining above the regulatory requirement of 1.5x. However, profitability remains a challenge due to its high-cost agency-based distribution model. The company reported a net loss of Rs 145 crore in FY24, narrowing from Rs 203 crore in FY23, aided by higher investment income. Losses continued to shrink in Q1FY25, reducing to Rs 46.6 crore from Rs 94.1 crore in Q1FY24.
