The IDBI Federal Life Insurance Company has been renamed as Ageas Federal Life Insurance Company after Belgian multinational insurer Ageas Insurance International (Ageas) bought 23 percent holding representing 18,40,00,000 share for a consideration of Rs 507.10 crore.
The announcement comes a day after IDBI's joint venture arm IDBI Federal Life Insurance Company Limited (IFLI) confirmed selling its stake to Ageas.
Post the transaction, IDBI Bank will hold 25 percent stake in the life insurer, while Ageas will hold 49 percent in the insurance arm of IDBI bank limited. Earlier, IDBI Bank's shareholding in IFLI was 48 percent.
Ageas to acquire 23% additional stake from IDBI Bank in IDBI Federal Life Insurance
Apart from this, IDBI Bank also sold 4 percent stake to Federal Bank in the life insurance JV, which is pursuant to receipt of requisite regulatory approvals, the bank said in a regulatory filing.
Owned by Life Insurance Corporation of India (LIC), IDBI Bank was in talks to divest its stake in the life insurer for close to two years.
Earlier on August 6, 2020, the IDBI Bank had informed that it has entered into a Share Purchase Agreement (SPA) to sell 27 percent of its stake in its joint venture arm IDBI Federal Life Insurance Company Limited (IFLI) to other JV partners -- Aeges and Federal Bank.
Currently, IDBI Bank sells LIC policies too in its bank branches, which affects the sales of IDBI Federal Life policies.
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