AXA and Bharti to combine non-life operations in India
AXA and Bharti announced they have entered into an agreement to combine their non-life insurance operations in India, Bharti AXA General Insurance (“Bharti AXA GI”), into ICICI Lombard General Insurance Company (“ICICI Lombard”). The transaction will propel the combined entity to #3 amongst non-life insurers in India, with a market share of ca 8.7%. AXA and Bharti’s ownership of Bharti AXA GI is 49% and 51% respectively.
Under the terms of the agreement, AXA and Bharti will receive a total of 35.8 million shares of ICICI Lombard on closing, which would represent Euro 521 million at current market value, and an implied HY 2020 P/BV multiple of more than 5 times. The transaction is expected to result in a one-time positive Net Income impact of approximately Euro 0.2 billion in AXA Group’s FY 2021 consolidated financial statements.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by 4Q 2021.