Edelweiss Group on Friday announced the divestment of its remaining 70 per cent stake in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL) for Rs 307.60 crore.
Gallagher, who previously held 30 per cent in the business, will now be acquiring all the remaining shares, taking its stake to 100 per cent. The transaction is subject to approvals by the Insurance Regulatory and Development Authority of India, said a regulatory filing.
Headquartered in Mumbai, with branches in Dehli, Kolkata and Bangalore, EGIBL offers general insurance solutions to clients across India. The business operates across four areas -- corporate, affinity & association, reinsurance & global and digital solutions.
Gallagher and Edelweiss entered into a partnership in May 2019, with Gallagher acquiring a minority shareholding in the insurance broking business to give it wider access to international markets and global expertise.
This partnership marked Gallagher's maiden presence in India and gave the company a footprint in the growing Indian insurance market. This acquisition of the remaining shares of EGIBL will help enable a deeper integration with Gallagher's global operations, helping scale up the business significantly.
It will also give clients access to a larger suite of insurance products and services. The business will rebrand to Gallagher in the coming months. Edelweiss Group will focus on growing its life and non-life insurance businesses, which have been among the fastest growing in the industry.
Rashesh Shah, Chairman, Edelweiss Group said "We believe in doing what is right for the business and the customer and integrating the business with Gallagher will give it a global edge and achieve our objectives."
"It also provides us with the flexibility to reallocate capital and invest in scaling up our fast-growing life and non-life insurance businesses, making this a win-win for both of us," Shah said.
Vyvienne Wade, Gallagher Chairperson of Global Broking in Europe, Middle East, & Asia said that the company views India as a key and strategic market for the insurance industry and for Gallagher, given its scale and growth potential.
"We see many interesting opportunities for further development of the business," Wade said.
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