Generali wants to increase its stake in both life and non-life insurance entities to 74 per cent India From 49% currently, said sources, who declined to be identified as the conversations were private.
A source said, “The generals want a “majority” which could be 74% but could also be (a little less). The future wants to exit businesses entirely.”
Future and another Indian entity hold a 51% stake in the life-insurance joint venture with Generali, while Future holds the remaining 51% in the non-life insurance venture.
Indian Insurance Sector Rules
Allow a foreign player to keep a maximum of 74% A local entity would require another investor or investors if Futures were to exit businesses altogether, the first source added.
The second source said that Future was hoping to raise 30 billion rupees ($400 million) by selling its entire stake in the two businesses, adding that talks with Generali were being finalized and the Italian firm would soon take its stake. wanted to increase.
Future Generali, an Indian business, did not immediately respond to a request for comment. Spokesmen for Future Group and Generali also did not respond.
Future Generali sells life insurance and other policies including health, motor and travel insurance in India, where it is a relatively small player. According to its website, its life insurance business has insured 1.5 million people to date and manages approximately $680 million in assets.
A third source said insurance was a non-core business for Future Group, which runs India’s second largest retail chain
, and talks with Generali had been going on for several months.
Bhavishya, which is facing a mountain of debt and desperately in need of funds after being hit by the pandemic, is struggling to sell its retail assets due to a
Ongoing legal dispute with abandoned local partner Amazon.com Inc.
A third source said Future will use the proceeds from the sale of the insurance stake to maintain its retail business and clear liabilities of other group companies.
The deal is likely to require regulatory approval in India, including from insurance and competition regulators.
While taking up insurance products in a country of 1.3 billion people is low, it is expected to grow, with investment promotion agency Invest India projecting an insurance market of around $250 billion by 2025.