ICICI Bank on Friday sold 3.6 per cent stake in ICICI Lombard General Insurance Company for around Rs 2,250 crore.
The development comes after the bank, while announcing its January-March quarterly results in May, had said that it would look at further strengthening the balance sheet as opportunities arise. Post the divestment, ICICI Bank’s stake in its general insurance stands at around 51.9 per cent.
“In line with this intent and pursuant to approval granted by the board, the bank hastoday divested 18,000,000 equity shares of face value of Rs 10 each of ICICI Lombard General Insurance Company Limited, representing 3.96 per cent of its equity share capital at March 31, 2020, on the stock exchange for an approximate total consideration of Rs 22.50 billion,” the bank said in a regulatory filing.
ICICI Lombard GIC has Gross Written Premium (GWP) of Rs 14,789 crore for the year ended March 31, 2019, according to the company website. The company issued over 2.65 crore policies and settled over 16 lakh claims as on March 31, 2019.