Ageas open to more India investment, eyes top-10 life insurer spot
Subscribe to enjoy similar stories.Belgium’s Ageas Insurance is prepared to invest additional capital in India to break into the country’s top 10 life insurers in the next three to four years, provided returns on equity remain favourable.“If the growth is there and the return on equity is good, we will be there with the capital,” Ageas Insurance’s global CEO Hans De Cuyper, who is in India, told Mint. “On the life (insurance) side, we have expressed the intention to become top 10.
And I understand that will require a bit more capital in the market, and we have that available.”In India, Ageas operates in the life insurance space through its venture with Federal Bank–Ageas Federal Life Insurance where it holds 70% stake; and in the general insurance space through its partnership with Sundaram Finance–Royal Sundaram General Insurance where it holds 40% stake.Ageas, which raised its stake after India allowed 74% FDI in the insurance sector, said the group is “happy” with its Indian partners and would rather understand and develop the local businesses with them than increase its shareholding further to 100%.“…you could have control in an entity, but if you are not aligned with your partner, the business will not go well,” he said, adding that the group remains open to picking up more stake in the businesses.Growth in life insurance is being driven largely by its partner Federal Bank, which accounts for 70% of the insurer’s policy distribution. “Today, we are number 12 in the market.
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