In a major strategic move aimed at boosting its footprint in the insurance sector, the Central Bank of India on June 27 announced that it has successfully concluded the acquisition of significant equity stakes in both Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL). The bank has acquired a 24.91 percent stake in FGIICL and a 25.18 percent stake in FGILICL, marking a decisive step in expanding its presence in both the general and life insurance spaces.
The formal conclusion of the deal followed the finalisation of definitive agreements with Italy-based insurance major Generali Group, including key Shareholders’ Agreements, Trademark Agreements, and Distribution Agreements. The transaction has already received the necessary regulatory clearances, including approval from the Reserve Bank of India (RBI), allowing the public sector bank to proceed with a broader strategic roadmap in the insurance domain.
The announcement was made after the culmination of negotiations and documentation with Generali, a global insurance and asset management leader with operations in over 50 countries.
Banking synergy
Central Bank of India has a network of over 4,500 branches and more than 20,000 customer touchpoints. With Generali’s partnership, the bank is expected to deliver life, health, and general insurance products suited to the Indian market.
The bank plans to leverage its nationwide branch infrastructure and robust digital platforms to distribute insurance products more efficiently. This includes targeting small-ticket customers, first-time insurance buyers, and those in semi-urban and rural areas who traditionally have limited access to structured insurance coverage.
Advisors
The Central Bank of India has acknowledged the advisory role played by Ashvin Parekh Advisory Services LLP (APAS), which assisted the bank from the inception of the deal. APAS provided support on strategic planning, valuation, due diligence, and coordination with the resolution professional during the bidding process. Legal services were led by Cyril Amarchand Mangaldas (CAM), a prominent law firm that advised on the finalisation of all legal and transactional documents related to the deal.
The deal comes at a time when Indian public sector banks are increasingly looking to diversify their product offerings and enhance non-interest income streams. Insurance penetration in India remains low compared to global averages, particularly in rural and semi-urban markets. According to IRDAI data, life insurance penetration stood at just 3.2 percent in FY23, while general insurance penetration was even lower.
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