INSUBCONTINENT EXCLUSIVE:
Mumbai: Andhra Bank plans to sell its 30 per cent stake in IndiaFirst Life Insurance Company in full or in part to raise Rs 900 crore, a
person close to the matter said
Existing investor Warburg Pincus is one of the suitors for the stake.
Warburg Pincus had acquired a 26 per cent stake in IndiaFirst Life
Insurance from UK-based Legal General Group in June 2018 for Rs 710 crore, valuing the insurer at Rs 2,900 crore
would not like to comment
In December, Andhra Bank had said in a statement that it would sell its stake in the life insurance business.
Bank of Baroda owns 44 per
cent of IndiaFirst, while Andhra Bank holds 30 per cent
to either fully or partially divest its stake to third parties in IndiaFirst Life in accordance with the provisions of the joint venture
agreement, the bank had said in its request for proposal letter.
It issued the request for proposal for selection of an expert to carry out
independent equity evaluation of the stake, on a per-share basis
In 2017-18, Andhra Bank had received Rs 32 crore as fee from bancassurance for selling life insurance products.
During the financial year,
the bank had mobilised new business premiums including retail and group business of Rs 190.88 crore and renewal premium of Rs 214.31 crore
Andhra Bank also sells general insurance products of United India Insurance, Reliance General and Cigna TTK Health.
