XL Catlin to acquire 20% stake in Mahindra Insurance Brokers
In a press statement, the company said that XL Group will help support MIBL’s endeavours to increase insurance awareness and penetration in under-penetrated markets and across under-served customers in rural India.
October 16, 2017 / 20:28 IST
XL Group will acquire 20 percent stake in the insurance broking firm Mahindra Insurance Brokers (MIBL), the latter today said. XL Group will buy the stake through its subsidiary — a leading global insurer and reinsurer operating under the XL Catlin brand.
The deal is subject to satisfaction of customary closing conditions by all stakeholders.
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MIBL is the subsidiary of Mahindra & Mahindra Financial Services Limited (Mahindra Finance) and a licensed composite broker. The broking firm's current valuation is at Rs 1,300 crores (approx. USD 200 million).
Currently, LeapFrog Financial Inclusion Fund holds a 15 percent stake in MIBL via its subsidiary Inclusion Resources Private Limited (IRPL). LeapFrog will purchase an additional 5 percent stake in MIBL from Mahindra Finance taking the total equity stake to 20 percent.
LeapFrog will then sell the entire 20 percent stake of IRPL to XL Group immediately, subject to necessary regulatory approvals.
In a press statement, MIBL said the XL Group will help support the company’s endeavours to increase insurance awareness and penetration in under-penetrated markets and across under-served customers in rural India.
Greg Hendrick, President, P&C Insurance and Reinsurance, XL Catlin, said, “This minority investment plays to our commitment to emerging markets and to supporting insurance penetration in developing economies, helping improve economic resilience by closing the gap between economic and insured losses.”
XL Group has a large shared service operation presence in India, at Gurugram and Bengaluru, operating under the brand XL Catlin. It provides business and underwriting support, claims administration, actuarial services, finance and accounting, and more. The Group also has a fully licensed reinsurance branch operating under the same brand in Mumbai.
Jaideep Devare, Managing Director, Mahindra Insurance Brokers said that they want to introduce insurance ideas from the global markets, suitably adapted for the Indian market.
"MIBL would continue to focus on the rural and semi-urban areas, where insurance penetration is low and the need for social and economic progress that insurance inclusion can bring is high. We will welcome XL Group as a valuable partner to drive dialogue on these efforts," he added.
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