Fairfax Financial has announced that it has agreed to sell a 12.81% stake Indian insurer ICICI Lombard.
The international firm has sold the stake to Red Bloom Investment, Tamarind Capital, and IIFL Special Opportunities Fund and values the firm at approximately US$3.1bn, with the cost of the sale estimated at approximately US$383m.
ICICI Lombard is a joint venture between the Canadian-based financial services giant and ICICI Bank.
After the deal is completed, Fairfax will own a 22% stake in the firm, with ICICI Bank controlling 63% of the business which brings in approximately US$1.2bn in gross written premium annually.
The deal comes as Fairfax looks to lower its holding in the joint venture as it seeks to launch another firm.
Earlier this year, it was announced that The Insurance Regulatory and Development Authority of India (IRDAI) had given its initial approval for Fairfax to open a second non-life joint venture in the country but the firm would have to lower its stake in ICICI Lombard to below 10%.
Prem Watsa, a Canadian billionaire of Indian descent who owns Fairfax, will have a 49% stake in the new joint venture.
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