Larsen & Toubro Limited (L&T), Generali Group and the Future Group have signed a non-binding term sheet for the merger of L&T General Insurance Company Limited (LTGI) and Future Generali India Insurance Limited (FGI).
On the completion of the merger, L&T and Generali would acquire such number of shares as would result in L&T having a 51 per cent stake, Generali having a 26 per cent shareholding and the balance to be held by Future Group in the merged entity.
The completion of the transaction is subject to satisfactory due diligence by both the parties, execution of mutually agreed definitive binding documents and requisite approvals from IRDA and other regulators and related corporate bodies.
LTGI, having started operations in 2010, achieved a GWP of Rs. 143 crore for year ending March 2012 and Rs. 118 crore for the nine months ended December 2012. LTGI operates out of 15 branches, servicing customers in more than 1,000 locations using its state of art technology platform.
Cumulatively, it has issued more than 150,000 policies covering various products till date. FGI is a joint venture between Future Group, owning a 74 per cent stake and Generali Group owning a 26 per cent stake.
The company achieved a GWP (gross written premium) of Rs. 1,034 crore for the year ending March 2012 and Rs. 855 crore for the nine months ended December 2012. It has issued over 840,000 policies and has settled over 100,000 claims in FY13. Future Generali India Insurance is currently active through 83 offices with about 5,900-plus agents.