After IDBI Bank's departure, Ageas Federal Life Insurance has become the first Indian life insurer with 74% foreign ownership.

Ageas Insurance International of Belgium purchased IDBI Bank's whole 25% ownership in the life joint venture for INR5.8bn ($71.6m), according to an Ageas statement.

Ageas has increased its stake in the joint venture it has operated with IDBI Bank and Federal Bank to 74% with this transaction, according to a statement.

Ageas Federal Life Insurance stated that, with the conclusion of Ageas' majority investment, it is the first life insurer in India in which a foreign partner owns 74% of the company's shares.


Domestic lenders In 2007, IDBI Bank, Federal Bank, and Ageas founded the life insurance joint venture, then known as IDBI Federal Life Insurance Company, which began operations in 2008.


In May of this year, IDBI Bank, which is managed by LIC, stated that it had achieved a deal with Ageas Insurance International for the sale of its full 25 percent stake. IDBI Bank maintains a partner in distribution.


Federal Bank maintains its 26% share in the insurance joint venture.


In May of this year, the Italian financial services giant Generali increased its investment in Future Generali India Insurance to 74% in the non-life market.


The Indian government declared in the Union Budget 2021-22 that it will permit foreign players to increase their holdings in Indian joint venture insurance firms from 49% to 74% in an effort to attract investment and increase insurance penetration in the country.