Intimation under Regulation 30 and 51 of the SEBI (LODR) Regulation, 2015 - Acquisition of Equity Stake in Future Generali India Life Insurance Company Limited.
Awaiting price reaction for this filing.
Central Bank of India has acquired a 25.18% equity stake (about 65.44 crore shares) in Future Generali India Life Insurance Company Limited (FGILICL) for up to Rs 57 crore in cash, with the deal completed on 4 June 2025. The move marks the public-sector bank's entry into the insurance sector through FGILICL, a Mumbai-headquartered life insurer incorporated in 2006 with a Gross Written Premium of Rs 1,810.53 crore in FY24. The acquisition follows a Letter of Intent dated 20 August 2024 issued under the IBBI's insolvency resolution process, and all required approvals from CCI, RBI, and IRDAI have been obtained. Generali remains the largest shareholder in FGILICL with a 73.99% stake, while the transaction is not a related-party deal.
This is a strategic diversification move for Central Bank of India into the life insurance space, potentially creating fee income, distribution synergies, and cross-selling opportunities through the bank's branch network. For shareholders, it represents a modest capital outlay (Rs 57 crore) for a foothold in a growing insurance business, though returns will depend on FGILICL's turnaround under the new shareholder structure.