Legal & General has sold its 26% stake in IndiaFirst Life Insurance to an affiliate of Warburg Pincus LLC. IndiaFirst Life Insurance is a joint venture between Andhra Bank, Bank of Baroda (Bob), and UK-based Legal & General. Bank of Baroda and Andhra Bank, the existing shareholders, hold a 44% stake and a 30% stake in the life insurance company, respectively.
Mr. Simon Burke, the Group Commercial Director of Legal & General, said that the company has disposed of a number of business operations in several countries in an effort to refocus its insurance business in the UK and the US.
IndiaFirst Life Insurance issued a statement saying the stake sale is subject to receiving approval from the Insurance Regulatory and Development Authority of India (IRDAI). Thus, it is likely that the stake sale will only be completed by the end of 2018. The transaction value of the stake sale was not disclosed by any of the partners. Ambit Private was appointed as the exclusive financial advisor for the stake sale.
Launched in the year 2010, IndiaFirst Life Insurance has been profitable for the last four financial years. The insurer declared a profit to the tune of Rs.51 crore in FY17-18. The joint venture partnership between the three companies had a paid-up capital and assets under management (AUM) of Rs.625 crore and Rs.12,622 crore as on March 31, respectively.
IndiaFirst Life Insurance, which is headquartered in Mumbai, has a pan-India presence, with offices in over 1,000 cities and towns across the nation. The insurance firm offers a varied range of individual and group insurance plans as part of its product portfolio.