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Warburg Pincus buys Legal & General’s 26% stake in IndiaFirst Life for Rs 710 Cr

Thursday, May 31, 2018, 18:13
This news item was posted in Business category and has 0 Comments so far.

By Reghu BalakrishnanMUMBAI: Warburg Pincus LLC has acquired 26% stake in IndiaFirst Life Insurance Co Ltd from by existing investor Legal & General Group Plc for Rs 710 crore, people aware of the development said. The board of IndiaFirst Life has approved the transaction and an announcement is likely on Friday. IndiaFirst is a joint venture between Bank of Baroda, which owns a 44% stake, Andhra Bank, which holds 30%, and Legal & General. Others who were in race for Legal & General’s stake include General Atlantic LLC, Ergo International AG, Manulife Financial Corp and Canadian billionaire Prem Watsa’s Fairfax. Investment bank Ambit advised Legal & General Group. Launched in 2010, Mumbai-headquartered IndiaFirst Life Insurance is one of country’s youngest life insurance companies. IndiaFirst Life is present in over 1,000 cities and towns across the country through 10,000 plus points of sale, claims the company. IndiaFirst Life had an asset under management (AUM) of Rs 12,622 crore as on March 31, 2018, compared with Rs 10,858 crore as on March 31, 2017. The company had reported 46% growth in net profit at Rs 51 crore during FY18, against a PAT of Rs 35 crore in FY17. The company issued over 1.84 lakh policies in FY18, compared with 1.26 lakh policies in FY17. When contacted, RM Vishakha, MD & CEO, IndiaFirst Life Insurance Co Ltd, declined to comment while mails sent to Warburg Pincus, Legal & General did not elicit any responses till press time. Warburg has a wide exposure in Indian financial services space with its investments in AU Financiers and Capital First Ltd. At present, Red Bloom Investment Ltd, a company wholly-owned by private equity funds managed by Warburg Pincus LLC, owns 9% stake in ICICI Lombard General Insurance Co Ltd, India’s largest general insurer. Last year, a clutch of investors including Warburg Pincus, Clermont Group and IIFL Special Opportunities Fund had acquired a 12.18% stake in ICICI Lombard from Fairfax in a deal worth Rs 2,372.5 crore ($383 million). Warburg Pincus LLC, which has more than $44 billion in private equity assets under management, invested in Indian companies such as Lemon Tree, PVR, Quikr, Kalyan Jewellers, Car Trade, Gangavaram Port, Avtec, Biba Apparels and Piramal Realty.

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