Muthoot Finance Ltd has completed an acquisition of Muthoot Insurance Brokers Pvt Ltd (MIBPL) by transfer of equity shares from its existing shareholders for a consideration of Rs 20 crore. With this, the company has become a wholly owned subsidiary, after receiving necessary approval from Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (Irdai).
It has received board approval for the move through a resolution on October 29,2015, subject to regulatory approvals.
MIBPL is an unlisted private limited company holding a licence from Irdai since 2013, to act as a direct broker. It actively distributes both life and non-life products of various insurance companies. During FY15, it insured more than 2,92,000 lives with a premium collection of Rs 35 crore under traditional, term and health products. This roe to 4,59,000 lives with a premium collection of Rs 49 crore in FY16, said the company.
George Alexander Muthoot, MD, Muthoot Finance Ltd said that by acquiring MIBPL as a wholly owned subsidiary of Muthoot Finance, the company has further diversified its bouquet of investment products as well as fee-based income earning activities.
“We are expecting shareholders to benefit through this acquisition in future as the company has a large customer base,” he said.
Thomas P Rajan, Director, MIBpL stated: “By becoming a wholly-owned subsidiary of Muthoot Finance, we will be able to serve its customers as well as scale up our distribution activities across the nation.”
Source: Business-Standard