Rs 455 crore deal had got stuck for over 18 months as the IRDA had refused give its approvals in the absence of certain key information about the transaction
Mumbai: Allowing the entry of private equities(PEs) in the insurance broking sector, after almost 18 months since it was initiated, IRDAI has allowed full take over of Aditya Birla Insurance Brokers Ltd. (ABIBL) by Edme, set up by Samara Capital, Norwest Venture Partners and Creador as a platform in the insurance intermediaries space.
The deal had got stuck since March 2023 as the IRDA had refused give its approvals in the absence of key information like source of funding about the Rs 455 crore deal.
The deal was approved by the IRDAI this July end by relaxing a few rules on PEs owning insurance brokers. Edme was asked to bring in the money within a month to conclude the deal.
Samara Capita, while taking over ABIBL in March 2023, had planned for multiple acquisitions of Indian brokers to create a large broking unit in India. It had even offered to buy out Global Insurance Brokers, owned by Prabodh Thakker, which was finally acquired by Aon, the second largest international insurance broker.
It is not known now, if Samara Capital still wants pursue its earlier plans to buy out more Indian insurance brokers.
ABIBL, which has a strong presence in the retail insurance broking space, will be renamed to Edme Insurance Brokers Pvt. Limited subject to IRDAI approval.
Following the acquisition, Edme will focus on building all three legs of the business – corporate, reinsurance and retail broking.
Sanjay Radhakrishnan, the CEO designate of Aditya Birla Insurance Brokers, said, “The burgeoning gig economy is an exciting sector for insurance where innovative product offering leveraging technology can make a huge difference.”
Shardul Amarchand Mangaldas & Co. have been the legal advisors of the deal.