Generali has inked a deal with Future Group to nearly double its stake in its insurance ventures in India as it looks to expand its footprint in the country.
Under the terms of the deal, Generali’s shareholding in Future Generali insurance ventures will increase from 25.5 percent to 49 percent.
Through this transaction, Generali has committed up to around EUR120mn to the partnership which will accelerate the leverage of the far-reaching distribution network of Future Group, a unique platform and customer ecosystem to offer insurance protection solutions within India with a focus on digital.
Generali’s long-standing partnership with Future Group currently generates gross written premiums of EUR375mn, which it notes have been growing steadily year-on-year.
The Italian carrier’s presence in India currently takes the form of two joint ventures called Future Generali India Life Insurance Company Limited and Future Generali India Insurance Company Limited (non-life insurance).
Commenting on the deal, Generali global business lines and international CEO Frédéric de Courtois said: “We see large potential for growth in India as part of our strategic expansion plan in Asia, and we could not have a more experienced partner that knows and understands the local landscape.
“Generali’s proven expertise in insurance combined with Future Group’s unrivalled distribution in India is a truly winning combination. We could not be happier to strengthen our ties with them.”
Kishore Biyani, Future Group managing director and CEO added:“Future Group has one of India’s biggest pool of consumption-oriented customers, and its network connects with customers for a large wallet share and at consistently high frequencies.
“With Generali, we have an unparalleled product and global insurance expertise that has the potential to significantly increase the throughput of our retail network and scale at Future Generali. Generali has been a partner of huge trust for us, and we are delighted to strengthen our partnership with them.”
The transaction is expected to close in the second half of this year, subject to regulatory approvals.