Warburg Pincus LLC has acquired a 26% stake in IndiaFirst Life Insurance Co Ltd from Legal & General Group Plc for an undisclosed amount, the company said in a statement on Friday.
IndiaFirst is a joint venture (JV), with Bank of Baroda and Andhra Bank holding 44% and 30% stake, respectively. The remaining 26% in the JV was held by Legal & General.
The transaction is subject to approval from the Insurance Regulatory and Development Authority of India, along with other regulatory clearances. Ambit Private Limited was the exclusive financial adviser for the transaction, the statement said.
In May, Mint reported that the private equity giant had emerged as the front runner to buy Legal & General’s 26% stake in IndiaFirst Life.
Mint also reported on 6 February that Warburg Pincus, along with Prem Watsa’s Fairfax Financial Holdings Ltd, was shortlisted for the stake sale.
Mumbai-headquartered IndiaFirst Life’s product offerings include protection, savings, education and retirement plans.
With a presence in 1,000 cities and towns across the country, its assets under management stood at ₹12,622 crore as of 31 March, the company said.
“Legal & General has been an extremely supportive partner and an integral part of our journey till now,” said R.M. Vishakha, managing director and chief executive of IndiaFirst Life. “As we enter a new phase of growth, we welcome Warburg Pincus as a shareholder to support and drive focus towards value creation. We are truly fortunate that both our shareholding banks demonstrate confidence and provide unstinting support towards our growth plans. We look forward to scaling new heights and creating immense value under the combined guidance of our shareholders.”
In fiscal 2018, the company’s net profit rose 46% to ₹51 crore — the fourth consecutive year since inception that it had reported a profit.
“IndiaFirst Life has demonstrated remarkable performance over the last few years and we are excited to be partnering with Bank of Baroda and Andhra Bank to support the continued growth of the company and to help create value for all stakeholders,” said Narendra Ostawal, managing director of Warburg Pincus. “We look forward to backing R.M. Vishakha and the management team of IndiaFirst Life, and supporting them to create one of India’s leading life insurance companies,” Ostawal said.
Source: Mint