ICICI Bank gets IRDAI approval to increase ICICI Lombard stake by 4%

The Insurance Regulatory and Development Authority of India (IRDAI) has given the ICICI Bank its approval to increase its ownership stake in ICICI Lombard General Insurance by an extra 4%. By August 31, 2024, the bank may expand its ownership stake in the insurance company through one or more tranches.

In May, ICICI Bank informed the exchanges that a plan to raise its stake in the insurance company in many tranches had been approved by the board of directors. The Bank owned 48.01% of ICICI Lombard General Insurance as of June 2023, following the company's ownership pattern. The further share purchases will turn ICICI Lombard into a bank subsidiary.

After ICICI Lombard acquired Bharti AXA General Insurance in 2021 and allotted 35,756,194 equity shares to the company's current shareholders, the bank's ownership of the insurance company fell from 51.87% to 48.08%.

On August 4, 2023, the RBI approved the bank's proposal to increase its stake.

As a joint venture between ICICI Bank and Fairfax Financial Holdings, ICICI Lombard General Insurance Company was established in 2002. In 2019, Fairfax left the organization. In the previous six months, shares of ICICI Bank have increased by 11.51%. A return of 23.56% was provided by ICICI Lombard General Insurance throughout the same period.

Source: Media Reports