Bank of Baroda (BoB) on Friday said its board has approved acquisition of a 21% stake of Union Bank of India in IndiaFirst Life Insurance, subject to regulatory approvals. The bank, however, did not provide details of valuation of the deal.
On completion of the transaction, BoB will hold a 65% stake in IndiaFirst Life, Union Bank will hold 9% and Carmel Point Investments India will have the remaining 26% stake. IndiaFirst Life Insurance will continue to have long-term agency distribution agreement with both Bank of Baroda and Union Bank after stake sale, according to an exchange filing.
At present, according to the insurer’s website, Bank of Baroda’s stake stands at 44%, Union Bank holds 30% and Carmel Point Investments India has 26% stake in the company.
As on March end, IndiaFirst Life Insurance’s total assets under management stood at Rs 17,109 crore, while the total premium collections stood at Rs 4,056 crore.