Central Bank of India Acquires 25.18% Stake in Future Generali Life Insurance

2 days ago

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On Thursday, the Central Bank of India, a government-owned bank, announced that it has bought a 25.18% stake in Future Generali India Life Insurance Company Limited (FGILICL). The bank paid Rs 57 crore in cash for this purchase, which happened as part of an insolvency process.

The bank acquired 65,43,80,439 shares of FGILICL on June 4, officially entering the insurance business, according to a regulatory filing from the Central Bank of India.

Currently, the bank owns 25.28% of FGILICL, which recorded a gross written premium of Rs 1,810.53 crore in the financial year 2023-24.

The Competition Commission of India (CCI) has also approved this 25.18% equity stake. The approval came after the bank submitted a successful bid under the Insolvency and Bankruptcy Board of India regulations meant for corporate insolvency resolution.

About Future Generali India Life Insurance

FGILICL offers many types of insurance products such as:

Savings insurance
Investment plans (also called ULIPs)
Term insurance
Health insurance
Child plans
Retirement plans
Rural insurance
Group insurance plans

The company was founded in 2006 and is based in Mumbai. It operates through over 1,300 owned and partner locations across India, providing insurance solutions for both individuals and groups.

Background of the Stake Acquisition

Last August, Central Bank of India had announced it was the winning bidder to acquire stakes from the financially troubled Future Enterprises Ltd (FEL) in their life and general insurance businesses.

Future Enterprises previously held a 25% stake in Future Generali India Insurance and a 33% stake in Future Generali Life Insurance.

Central Bank of India was chosen by the Committee of Creditors (CoC) to buy these shares in Future Generali’s insurance ventures through a resolution plan under insolvency proceedings.