 "AXA hikes stake in Bharti AXA Life, General to 49%")
AXA has increased its stakes in Bharti AXA Life Insurance and Bharti AXA General Insurance companies to 49 per cent from 26 per cent. The foreign insurer has received approvals from the Foreign Investment Promotion Board (FIPB) and The Insurance Regulatory and Development Authority of India (IRDAI) for the deal.
FIPB had approved AXA's proposal to increase stakes in its life and general insurance joint ventures with the Bharti group to 49 per cent in May. AXA's proposal to invest Rs 1,290 crore in Bharti AXA Life and General Insurance was one of the 19 foreign direct investment (FDI) proposals worth Rs 2,165 crore cleared by the government. AXA became the first foreign partner to increase its stake in a domestic insurance company after the government approved up to 49 per cent FDI in the insurance sector in March, compared to 24 per cent earlier.
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Later, the Competition Commission of India approved the proposed transactions for AXA to hike its stakes. Of the Rs 1,290 crore of FDI from AXA, Rs 858.60 crore will go to the life venture and Rs 431.40 crore to the general insurance venture.
In a statement after the FDI cap in insurance was raised to 49 per cent in March, Bharti Enterprises Chairman Sunil Bharti Mittal had said that AXA will step up its equity investment to 49 per cent.
“We are committed to servicing our customers through innovative and quality product solutions,” said Rahul Bhatnagar, managing director & CFO, Bharti Enterprises.
In 2014-2015, Bharti AXA Life recorded Rs 470 crore of new business collected premiums, achieving a yearly growth of 28 per cent on average over the past three years.
In the same financial year, Bharti AXA General Insurance recorded Rs 1,460 crore of gross direct premiums, achieving a growth of 18 per cent on average over the past three years.
