Private equity fund The Carlyle Group has picked up 9% stake in the life insurance arm of State Bank of India — SBI Life Insurance — for an undisclosed amount, Carlyle said in a statement.
“Carlyle’s equity for this investment came from CA Emerald Investments, an affiliated entity of Carlyle Asia Partners V, Carlyle’s flagship $6.55 billion fund focused on buyout and strategic investments across a range of sectors in Asia Pacific,” it said. Following this transaction, BNP Paribas Cardif and CA Emerald Investments now own 12.8% and 9% of the company, respectively, while SBI remains the majority shareholder with a 62.1% stake.
“The life insurance industry in India has strong growth potential thanks to favourable demographics and an increasing focus on financial savings…SBI Life, led by a strong management team, is well positioned to further benefit from industry trends,” said Sunil Kaul, MD of the Carlyle Asia Buyout advisory team.
Dinesh Kumar Khara, MD, global banking and subsidiaries, SBI, said “We look forward to Carlyle’s support to SBI Life in bolstering its franchise in the country.”