NEW DELHI, Mar 5: Ageas of Europe, the partner of IDBI Federal Life Insurance, looks to take its stake in the joint venture to 49 per cent from the current 26 per cent, taking a cue from similar moves by other foreign players.
“Shareholders are talking about that. Talks are on as Ageas wants to increase its stake to 49 per cent,” IDBI Federal Life Insurance CEO Vighnesh Shahane said.
Launched in March 2008, it is a joint venture between the state-owned IDBI Bank (48 per cent), private lender Federal Bank (26 per cent) and Ageas Insurance International NV (26 per cent), a multinational insurance giant based out of Europe.
Last month, the board of IDBI Bank also approved dilution of stake in some non-core businesses to shore up its capital base. The board of the bank has approved in-principle the proposal to divest some of its non-core investments subject to legal and regulatory compliance and final approval for each transaction, IDBI Bank had said.
As part of the disinvestment exercise, IDBI Bank may look at bringing down its stake in companies, including IDBI Federal Life Insurance.
Besides, IDBI Federal Life Insurance expects to wipe out accumulated losses in two years on the back of healthy balancesheet size.
The company is among the early ones to break even because of its huge distribution network, he said, adding that “we would be in a position to pay dividend to our shareholders after losses are out from our books”. (PTI)
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