Ageas to buy Royal Sundaram stake
Belgium’s insurance major Ageas Insurance International NV has clinched a deal to acquire 40 per cent share capital in non-life insurance company Royal Sundaram General Insurance Co. Ltd for an estimated $210 million (Rs 1,520 crore).
The transaction is subject to certain conditions to close, including the approval of the Insurance Regulatory and Development Authority of India (IRDAI) and other regulators. The transaction is expected to close in the first quarter of 2019.
T.T. Srinivasaraghavan, Managing Director, Sundaram Finance Ltd, said that over the past 18 years, Royal Sundaram has built a sterling reputation in the market for its customer service excellence, notably in claims management.
The company has demonstrated strong growth in its chosen segments and is witnessing a rapid growth in profitability, he said.
Ageas CEO Bart De Smet said: “Partnering with Sundaram Finance, a well-established company with a vast knowledge of the Indian insurance market, offers us a great opportunity to benefit from the potential of what is one of the world’s largest economies with an insurance industry that is expected to grow significantly in the coming years.”