Sundaram Finance has acquired the entire 26% equity stake held by UK-based Royal & Sun Alliance Insurance (RSA) in the equity share capital of Royal Sundaram Alliance Insurance Company (Royal Sundaram), for a total of Rs 450 crore. With the acquisition, the holding of SFL in Royal Sundaram has increased to 75.90% from 49.90% and Royal Sundaram has become a subsidiary of the company.
In February, SFL and RSA group had reached an agreement under which RSA agreed to sell its entire 26% stake in Royal Sundaram to SFL. Commenting on the transaction, TT Srinivasaraghavan, MD, SFL, had then said: “SFL and RSA have enjoyed an excellent relationship over the last 15 years and built up a successful and respected brand in the insurance industry in India. RSA has added a lot of value on the technical aspects of the business and been a valued partner.