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After the completion of the transaction, Sundaram Finance and its associates would hold 100% of the shareholding of Royal Sundaram.
After the completion of the transaction, Sundaram Finance and its associates would hold 100% of the shareholding of Royal Sundaram.

Sundaram Finance to buy out RSA’s stake in Royal Sundaram alliance

Sundaram Finance holds 49.9% in the venture and the stake purchase would increase its holding to 75.9%.

Chennai: Sundaram Finance has agreed to buy out joint venture partner UK-based RSA Group’s entire 26% equity in Royal Sundaram Alliance Insurance Co. Ltd for 450 crore.

Sundaram Finance holds 49.9% in the venture and the stake purchase would increase its holding to 75.9%.

After the completion of the transaction, Sundaram Finance and its associates would hold 100% of the shareholding of Royal Sundaram.

Royal Sundaram, the first private sector non-life insurance company to be granted a licence in India, reported gross written premium of 1,437 crore in 2013-14.

“RSA has added a lot of value on the technical aspects of the business and been a valued business partner," said T.T. Srinivasaraghavan, managing director, Sundaram Finance Ltd.

RSA Group had recently undertaken a review of its businesses globally and decided to exit non-core markets, of which India is one.

“While we are sorry to part company with them, we recognise that this is part of their larger global portfolio strategy," said Srinivasaraghavan.

“India is entering an exciting phase in its economic journey and the financial services sector, specifically the insurance sector, is poised for significant growth," he added.

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