Italy’s Generali is in talks to raise its stake in two Indian insurance businesses as its local partner, debt-laden Future Group, looks to exit the arrangement, three people familiar with the discussions said.
Generali wants to increase its stake to as much as 74% in both the life and non-life insurance entities in India from 49% currently, added the sources, who declined to be identified as the talks were private.
Future and another Indian entity together own a 51% stake in the life-insurance joint venture with Generali, while Future holds all of the remaining 51% stake in the non-life insurance venture.
Indian insurance sector regulations allow a foreign investor to hold a maximum of 74% of a local entity so another investor or investors would be needed if Future were to completely exit the businesses.
Future is also hoping to raise 30 billion rupees ($400 million) by selling its entire stake in the two businesses. Talks with Generali were close to being finalised and the Italian firm was keen to raise its stake soon.
The Indian business, Future Generali, did not immediately respond to a request for comment.
On Monday, Indian media reported that Industrial Investment Trust has agreed to sell its 16.62% stake in Future Generali to the Italian group.
Spokespersons for Future Group and Generali also did not reply to requests for comment.
- Reuters, with George Russell
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