Fairfax will need to sell 25% in ICICI Lombard for second licence
MUMBAI: Prem Watsa-owned Fairfax may have to reduce its stake in ICICI Lombard to get a second licence in the general insurance segment, the Insurance Regulatory and Development Authority (Irda) said.
When asked whether Fairfax will have to sell stake in ICICI Lombard to float another insurance company, TS Vijayan said chairman Irda said, "As per law they can promote only one insurance company. As a investor they can continue with less than 10% stake."
Fairfax has applied a second licence to form a fresh joint venture in general insurance with Kamesh Goyal, a former executive at German financial services major, Allianz. As per the application, different entities of Fairfax will own close to 45% in the joint venture. Goyal will have a 15% stake and Oben Ventures will hold the rest.
The Insurance Act allows foreign promoters to hold up to 49% of local operations. Fair fax owns 35% in ICICI Lom bard General Insurance. As an investor, one can own up to 10% in any insurance compa ny. Going by this rule, Fairfax will have to sell 25% in ICICI Lombard. Fairfax increased its stake in the company to 35% in 2015 by acquiring an additional 9% in a deal that valued the . 17,225 crore.joint venture at ` On HDFC Life and Max Life Insurance merger, Vijayan said they are following the process.Irda had expressed its reservations over the deal structure in the proposed merger.
When asked whether Fairfax will have to sell stake in ICICI Lombard to float another insurance company, TS Vijayan said chairman Irda said, "As per law they can promote only one insurance company. As a investor they can continue with less than 10% stake."
Fairfax has applied a second licence to form a fresh joint venture in general insurance with Kamesh Goyal, a former executive at German financial services major, Allianz. As per the application, different entities of Fairfax will own close to 45% in the joint venture. Goyal will have a 15% stake and Oben Ventures will hold the rest.
The Insurance Act allows foreign promoters to hold up to 49% of local operations. Fair fax owns 35% in ICICI Lom bard General Insurance. As an investor, one can own up to 10% in any insurance compa ny. Going by this rule, Fairfax will have to sell 25% in ICICI Lombard. Fairfax increased its stake in the company to 35% in 2015 by acquiring an additional 9% in a deal that valued the . 17,225 crore.joint venture at ` On HDFC Life and Max Life Insurance merger, Vijayan said they are following the process.Irda had expressed its reservations over the deal structure in the proposed merger.
