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Legal & General to offload stake in IndiaFirst Life Insurance
Legal & General Group has reached agreement in principle with an affiliate of Warburg Pincus to sell its stake in IndiaFirst Life Insurance Company for INR 710.54 crores (£79m), it announced on Friday.
The FTSE 100 firm said that on disposal, the consolidated Legal & General Group accounts would show a pre-tax profit of around £45m, with the disposal also resulting in a marginal improvement in the Solvency II coverage ratio.
"Legal & General is proud to have been a founding member of IndiaFirst Life and to have helped steer the company to its current position in the market, aided by the strong support of our joint venture partners, Bank of Baroda and Andhra Bank," said group commercial director Simon Burke.
"Legal & General has refocused its insurance business in recent years on the UK and the US and as a consequence we have disposed of a number of operations, including our businesses in the Netherlands, Ireland, France, Egypt and the Gulf.
"We are now following this strategy in relation to our stake in IndiaFirst Life."
Burke said Legal & General was "delighted" to have reached an agreement in principle with Warburg Pincus, subject to regulatory approvals.
Narendra Ostawal, managing director at Warburg Pincus, said IndiaFirst Life had demonstrated "remarkable performance" over the last few years, with his company said to be "excited" to be partnering with Bank of Baroda and Andhra Bank to support the continued growth of the company and to help create value for stakeholders.
"We look forward to backing R.M. Vishakha and the management team of IndiaFirst Life, and supporting them to create one of India's leading life insurance companies."