Federal Bank has executed a binding Memorandum of Understanding (MoU) with Ageas Insurance International NV and Ageas Federal Life Insurance Company Limited (AFLIC) to acquire an additional 4% equity stake in AFLIC. The acquisition will increase the bank’s holding in the life insurance joint venture from 26% to 30%.
The bank plans to purchase 3.2 crore equity shares at Rs 30.45 per share, amounting to a total consideration of Rs 97.44 crore. The transaction is contingent upon signing of the Share Purchase Agreement, satisfaction of conditions precedent, and regulatory approvals from the Reserve Bank of India and the Insurance Regulatory and Development Authority of India (IRDAI).
AFLIC, incorporated on January 22, 2007, is a key player in India’s life insurance sector. As per FY24 audited financials, it reported a net profit of Rs 107 crore, a net worth of Rs 1,176 crore, assets under management of Rs 17,455 crore, and gross written premium of Rs 2,697 crore. The company’s GWP for FY22 and FY23 stood at Rs 2,207 crore and Rs 2,289 crore, respectively.
The acquisition is targeted to be completed on or before October 31, 2025, through a cash transaction. It does not fall under related party transactions.
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