The French insurer AXA's 49% investment in Bharti AXA Life Insurance Co. will be acquired by Bharti Group, the Indian conglomerate announced, assuming full control of a business that has been managed jointly for nearly two decades.
It wasn't immediately obvious if the agreement signifies the French insurer's departure from the nation of South Asia. Bharti said that it was in discussions with other investors to expand the company through alliances or mergers with other businesses.
The sector has seen a spate of deals this year as a booming stock market is helping insurers lock in profits from their investments and consolidate their operations in a market dominated by the state-backed Life Insurance Corporation of India.
British United Provident Association (BUPA) is set to become the majority owner of Niva Bupa Health Insurance after it struck a deal to buy a portion of PE firm True North’s stake in the JV. In an effort to take advantage of the relatively unexplored insurance market in India, the billionaire Burman family is also looking to purchase an additional share in Religare Enterprises for roughly 26%.
Bharti’s JV deal, made through its Bharti Life Ventures arm, is expected to close by December this year, subject to regulatory approvals. The company competes with HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance and LIC in a market ranked ninth in the world, according to the insurance regulatory body’s latest annual report.