Global investment firm The Carlyle Group on Friday announced that it has bought nine per cent stake in private sector SBI Life Insurance.
“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 in a statement.
It did not disclose the cost of the acquisition.
French insurer BNP Paribas Cardif earlier held 22 per cent stake in life insurer and it is reported to have been keen to cut its stake to meet regulatory norms for a public float.
So, BNP Paribas Cardif and CA Emerald Investments now hold 12.8 per cent stake and nine percent stake in the insurer respectively, while State Bank of India remains the majority shareholder with 62.1 per cent stake in the company.
“Carlyle’s trust in the company will further strengthen our resolve to enhance our leadership position in India’s life insurance industry through a single-minded focus on quality customer experience,” said Sanjeev Nautiyal, Managing Director and CEO of SBI Life.
Noting that SBI is the most trusted brand in the financial services sector, Sunil Kaul, Managing Director of the Carlyle Asia Buyout advisory team, said, “The life insurance industry in India has strong growth potential thanks to favorable demographics and an increasing focus on financial savings.”
SB Life, which is the country’s largest private sector insurer had launched its IPO in September 2017.