Italian insurance company Generali Group has agreed to increase its stake in its insurance ventures in India to 49% from 25.5%.
The company has signed an agreement with Future Group in this regard.
This transaction is expected to close in the second half of this year, subject to regulatory approval and customary closing conditions.
At present, the Italian firm’s presence in India is in the form of two joint ventures called Future Generali India Life Insurance Company and Future Generali India Insurance Company (Non-Life insurance).
Through the deal, the Italian insurance company has committed about €120 million to the partnership which will speed up Future Group’s far-reaching distribution network reach.
Generali said the partnership with Future Group annually generates gross written premiums of €375m, which has been growing steadily year after year.
Generali Group global business lines & 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.”
According to the company, the opportunity can help in deepening its presence and to enhance its business in India, which is considered to be a priority market for long term growth in Asia.
Future Group managing director & Group CEO Kishore Biyani said: “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.”