Buy amount undisclosed; Changes brand name to Global Insurance Brokers
India’s Global Insurance Services has bought Aon’s entire 26% share in their joint venture Aon Global Insurance Brokers, for an undisclosed amount. With this, it has changed the brand name to Global Insurance Brokers.
The two joint venture partners had parted ways two years back and had received final approvals from the insurance regu lator and registrar of companies recently.
The joint venture, which started in 2001, saw Aon investing ` . 62 lakh for 26% at par in the JV .
Aon Global Insurance Brokers had been the second-largest insurance broker in the country, collecting premium income of ` . 2,000 crore a year.
“In the last year, our global access, capabilities and expertise for both inbound and outbound businesses have strengthened our positioning,“ said Prabhodh Thakker, promoter, Global Insurance Brokers. Global Insurance has been in the business for 45 years.
In the last two years, post the split with Aon and after the announcement of the deal, the company has added 200 employees and improved infrastructure.
Earlier, Aon was in talks with Catamaran to set up a new broking joint venture in India, after parting ways with a joint venture Aon Global.
The amendment to the Insurance Act had introduced a clause that states that management control needs to stay with Indian residents. In ad dition, a lot of joint venture agreements were signed with the understanding that foreign promoters would be al lowed to raise stake at par to 49% as and when the regulations permitted.
Many insur-ance companies have not raised stakes due to valuation mismatch and management control norms laid down by the regulators.The Reserve Bank of India norms prescribe that no transaction can happen at less than fair value.
Recently, in a similar instance, Kotak Life has bought out Old Mutual’s stake in the life insurance joint venture, by becoming 100% owned by Kotak.
Source : Economic Times
Date : 21-07-2017