ICICI Lombard Acquires Equity Shares in Axis Bank

On June 4, 2024, ICICI Lombard General Insurance Company Limited informed in a stock exchange filing that the company had acquired equity shares in Axis Bank Limited.

The cost of acquisition for the shares was ₹1.61 billion prior to the date of acquisition, with a cumulative total of ₹1.73 billion up to the acquisition date. The percentage of shareholding acquired by ICICI Lombard General Insurance Company in Axis Bank Limited was 0.06% both prior to and up to the date of acquisition.

The company stated that the investment in Axis Bank Limited does not constitute a related party transaction. ICICI Lombard’s promoter and promoter group entities may have investment and other business-related transactions/arrangements with Axis Bank Limited at arm’s length.

Axis Bank Limited also belongs to the banking industry and is the third-largest private bank in India. Incorporated in December 1993, Axis Bank Limited boasts an extensive network of branches among private sector banks and an international presence with branches in DIFC (Dubai) and Singapore, as well as representative offices in Sharjah, Abu Dhabi, Dubai, and Dhaka, and an offshore unit in GIFT City.

The bank offers a wide range of financial services to various customer segments, including Large and Mid-Corporates, MSMEs, Agriculture, and Retail Businesses. Axis Bank reported a turnover of ₹1,379.89 billion in FY 2024, ₹1,061.55 billion in FY 2023 and ₹861.14 billion in FY 2022.

Meanwhile, as another development, ICICI Lombard General Insurance Company Limited announced in another exchange filing that the company had launched a new product on June 5, 2024. The new product is called Elevate, and it belongs to the Retail Health Indemnity category. It will cater only for the Indian market.

About ICICI Lombard General Insurance Company Limited 

ICICI Lombard General Insurance Company Ltd is a prominent private-sector general insurance company in India that provides a wide range of products and risk management solutions through various distribution channels. It was set up in 2001 as a joint venture (JV) between ICICI Bank and Fairfax Financial Holdings Ltd. ICICI held a 64% stake, with Fairfax holding the remaining stake. Fairfax Financial exited the venture in 2019, selling its final 5% stake in the company for approximately ₹2,600 crores.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.