Edelweiss Financial Services added 3.12% to Rs 74.35 after the company announced the divestment of its stake in Edelweiss Gallagher Insurance Brokers (EGIBL).
Arthur J. Gallagher & Co. ("AJG"), who previously held 30% in EGIBL, will now be acquiring all the remaining shares, taking its stake to 100%. The transaction is subject to approvals by the Insurance Regulatory and Development Authority of India.
Headquartered in Mumbai, with branches in Delhi, Kolkata and Bangalore, EGIBL offers general insurance solutions to clients across India. The business operates across four areas; corporate, affinity & association, reinsurance & global and digital solutions. In the year ended March 2021, EGIBL reported revenue of Rs 63.11 crore and profit after tax of Rs 14.59 crore.
Gallagher and Edelweiss entered into a partnership in May 2019, with Gallagher acquiring a minority shareholding in the insurance broking business to give it wider access to international markets and global expertise. This partnership marked Gallagher's maiden presence in India and gave the company a footprint in the growing Indian insurance market.This acquisition of the remaining shares of EGIBL will help enablea deeper integration with Gallagher's global operations, helping scale up the business significantly. It will also give clients access to a larger suite of insurance products and services. The business will rebrand to Gallagher in the coming months. Edelweiss Group will focus on growing its life and non-life insurance businesses, which have been among the fastest growing in the industry.
Edelweiss Financial Services reported a consolidated net profit of Rs 636.70 crore in Q4 FY21 as against a net loss of Rs 2,281.55 crore in Q4 FY20. Total income during the quarter increased 127.9% to Rs 4,480.95 crore compared with Rs 1,965.87 crore in the same period last year.
The Edelweiss Group is a diversified financial services companies, providing a broad range of financial products and services. Its businesses include asset management, NBFC, housing finance, asset reconstruction, wealth management, life insurance, general insurance and insurance broking.
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