ICICI General Insurance Agency. Ltd, India’s largest non-life private insurer, is in advanced talks to acquire
Bharti AXA General Insurance Co. Ltd, and merging the two companies’ insurance properties, said two people aware of the talks.
Both companies are negotiating Bharti AXA’s valuation calling for anonymity, the people have said.
ICICI Lombard, which has a market share of 8.4 percent and owns 51.89 percent of ICICI Bank Ltd, experienced a gross premium of 3,302.19 crores in the quarter of June, 5.3 percent lower than last year’s period. However, that was in line with a downturn in the industry as a whole. In contrast, Bharti AXA General posted a 12 percent year-on-year drop in gross premium to a quarterly drop to some 508.93 crores.
The acquisition plans come at a time when the general insurance industry is reeling due to the disruption caused by the COVID-19 pandemic and the economic slowdown. The existing 25 general insurers (excluding standalone health insurers) saw a 6% drop in premium in the June quarter due to a steep slowdown in sales of non-life policies in the wake of a prolonged lockdown that led to a temporary halt in most commercial activities.
Bharti Enterprises currently owns 51% in Bharti AXA General, while its France-based JV partner AXA has 49%.
According to industry estimates, Bharti AXA has a market value of ₹2,800 crores. ICICI Lombard is valued at ₹62,827 crores.
