1 min read.Updated: 02 Nov 2020, 07:21 PM IST Written By Staff Writer
Pursuant to the proposal, the entire general insurance business of Bharti AXA would be transferred by way of a demerger to ICICI Lombard in consideration of issuance of shares by ICICI Lombard to Bharti AXA
The Competition Commission of India (CCI) approved acquisition of General Insurance Business of Bharti AXA General Insurance Company Limited (Bharti AXA) by ICICI Lombard General Insurance Company Limited (ICICI Lombard) under Section 31(1) of the Competition Act, 2002, the Ministry of Corporate Affairs said in a statement.
ICICI Lombard is a general insurance company registered with the Insurance Regulatory and Development Authority of India (IRDAI) and is engaged in providing a comprehensive and well-diversified range of general insurance products, including motor, health, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.
Bharti AXA, on the other hand, is a general insurance company registered with the IRDAI and is a joint venture held by Bharti General Ventures Private Limited (51%) and Societe Beaujon (49%). It is engaged in providing general insurance products, including motor, health, travel, crop and home insurance to its customers.
"Upon closing of the proposed transaction, the consolidated entity will have a market share of approximately 8.7% on proforma basis in the non-life business. The proposed transaction is expected to result in value creation for all stakeholders through meaningful revenue and operational synergies. Further, policyholders should benefit from an enhanced product suite and deeper customer connect touch points. The employees of the combined business will also benefit via greater opportunities across functions and geographies," ICICI Lombard said in a statement.
Pursuant to the proposed combination, the entire general insurance business of Bharti AXA would be transferred by way of a demerger to ICICI Lombard in consideration of issuance of shares by ICICI Lombard to Bharti AXA.
Detailed order of the Commission will follow, the statement added.
Last month, ICICI Lombard General Insurance reported a 35 per cent growth in September quarter net profit at ₹415.74 crore, despite the losses due to natural calamities and mounting claims from the COVID-19 pandemic.
Total income rose to ₹2,883.40 crore during the quarter from ₹2,739.67 crore a year ago, the company said.