IRDAI nod to demerger of Bharti AXA's general insurance biz to ICICI Lombard

Insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) has granted the final approval for the demerger of the general insurance business of Bharti AXA General Insurance Company Limited to ICICI Lombard General Insurance Company Limited by way of a scheme of arrangement.

The company had earlier received regulatory and other approvals for the proposed scheme of arrangement among ICICI Lombard General Insurance Company Limited and Bharti AXA General Insurance Company Limited, and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013, and Sections 35 to 37 of the Insurance Act, 1938.

ICICI Lombard stated it received the IRDAI letter granting final approval to the proposed scheme on September 3, 2021.

IRDAI has also granted approval to ICICI Bank Limited to bring down its stake in ICICI Lombard General Insurance Company Limited to 30 per cent, the statement said.

The appointed date for the scheme is April 1, 2020. The demerger and transfer of general insurance business, as envisaged in the scheme, will be effective in 3 days from the date of the final approval, the company added.

ICICI Lombard General Insurance stock closed at Rs 1,629.50, up Rs 0.60 or 0.037 per cent, compared to the previous session close of Rs 1,628.90 on the NSE.

Also read: How Account Aggregators can help you get the best loan, insurance or investment deals

Also read: Sandeep Bakhshi reappointed as ICICI Bank CEO, MD till October 2023