1st Jun 2018 10:00
LONDON (Alliance News) - Legal & General Group PLC said Friday it has sold its stake in IndiaFirst Life Insurance Company to a Warbug Pincus LLC subsidiary.
The INR710.54 crore sale, about GBP79 million, is for Legal & General's 26% stake in the Mumbai-based the life insurance company.
The disposal will result in a pretax profit of about GBP45 million in the FTSE 100-listed company's accounts, it said. It will also result in a "marginal improvement" in the company's Solvency II coverage ratio.
Commercial Director Simon Burke said: "Legal & General is proud to have been a founding member of IndiaFirst Life and to have helped steer the company to its current position in the market, aided by the strong support of our joint venture partners, Bank of Baroda and Andhra Bank.
"Legal & General has refocused its insurance business in recent years on the UK and the US and as a consequence we have disposed of a number of operations, including our businesses in the Netherlands, Ireland, France, Egypt and the Gulf. We are now following this strategy in relation to our stake in IndiaFirst Life. We are delighted to have reached an agreement in principle with Warburg Pincus, subject to regulatory approvals".
Shares in Legal & General were up 1.0% Friday at 272.50 pence each.
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