IRDAI Approves ICICI Bank's Increased Stake In ICICI Lombard General Insurance
ICICI Bank has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to increase its stake in ICICI Lombard General Insurance Co. by 4 per cent, which will elevate it to the status of a subsidiary.
As of 31 March 2023, ICICI Bank already holds a 48.02 per cent stake in ICICI Lombard, as stated in an exchange filing. This approval aligns with the earlier notification made on 28 May, where ICICI Bank's Board of Directors sanctioned an increase in its shareholding in ICICI Lombard General Insurance, allowing for the acquisition of up to an additional 4 per cent shareholding in compliance with applicable regulations and pending the receipt of necessary regulatory approvals. The 4 per cent stake will be acquired through the purchase of shares from the market.
Following the initial announcement, the Reserve Bank of India also granted approval on 4 August for the increased stake in the general insurer.
The IRDAI approval is conditional on ICICI Bank continuing to act as the promoter of the company, adhering to IRDAI Regulations, and meeting other specified conditions. The approval is valid for one year from the date of the letter, granting ICICI Bank until 31 August 2024, to incrementally raise its shareholding in the insurance company, either in a single tranche or multiple tranches.
On 1 September, ICICI Bank's shares closed 1.13 per cent higher at Rs 969.05 per share, while ICICI Lombard General Insurance Co. closed 2.08 per cent higher at Rs 1,341.30 per share. This performance exceeded the 0.86 per cent increase in the benchmark Sensex.
