Chennai, Feb 22 (GCBusiness) Sundaram Finance Ltd and Ageas Insurance International NV (Ageas) (SFL) announced on Friday that they have officially completed the Non Life Insurance Joint Venture transaction that they had signed in November 2018.
Sundaram Finance press release said that as part of the JV agreement, Ageas has acquired 40 per cent of the share capital of Royal Sundaram General Insurance Co Limited (Royal Sundaram). Subsequent to the divestment, Sundaram Finance Ltd now holds 50 per cent and some of the existing Indian shareholders hold the balance 10 per cent in Royal Sundaram.
The new JV will retain the existing well known ‘Royal Sundaram’ brand name. The partners
believe that the JV will create significant value for Royal Sundaram.
Sundaram Finance Ltd is one of the most respected financial services players in India with assets under management exceeding Rs 30,000 Cr. Incorporated in 1954, Sundaram Finance has an all India presence with over 650 branches.
Ageas is a listed international insurance Group with a heritage spanning 190 years offering Retail and Business customers Life and Non-Life insurance products designed to suit their specific needs. The company operates successful insurance businesses by itself or through joint ventures in Europe, China and Asia.
Commenting on the outlook for the JV, TT Srinivasaraghavan, Managing Director, Sundaram Finance Ltd., said “Like Sundaram Finance, Ageas are a retail-focused company with a strong Asia presence. As part of the go-to- market strategy of the JV firm, we are confident of tapping into their expertise and leveraging some of their best practices in claims management, automation in underwriting and analytics.”
Commenting on the performance of Royal Sundaram, Srinivasaraghavan said, “Royal Sundaram has posted strong growth in the last three years registering an average annual growth rate of 19 per cent and 56 per cent in GWP and Profit. The existing management team will continue at Royal Sundaram. Two executives from Ageas will be joining the Royal Sundaram team to work in specific areas where they can add value to the business”, the release said.