Non-life insurance business of Bharti AXA General Insurance Company Limited by ICICI Lombard General Insurance Company Limited
Further to the announcement made on August 21, 2020 regarding ICICI Lombard General Insurance Company Limited’s (“ICICI Lombard”) acquisition of the non-life insurance business of Bharti AXA General Insurance Company Limited (“Bharti AXA”), as a going concern, via a scheme of demerger and subsequent to approval from the Competition Commission of India (“CCI”), on November 2, 2020, and issuance of the Observation Letters by BSE Limited and the National Stock Exchange of India Limited, on November 2, 2020 and November 3, 2020 respectively, the Insurance Regulatory and Development Authority of India (“IRDAI”), through its communication dated November 27, 2020, has granted in principle approval with respect to the said transaction.
ICICI Lombard is progressing applications for receipt of requisite approvals from other concerned regulators for the transaction.
Upon closing of the proposed transaction, the consolidated entity will have a market share of ~8.7%* on proforma basis in the non-life business. The proposed transaction is expected to result in value creation for all stakeholders through meaningful revenue and operational synergies. Further, policyholders should benefit from an enhanced product suite and deeper customer connect touch points. The employees of the combined business will also benefit via greater opportunities across functions and geographies.