The proposed venture is expected to become the first new insurance company with up to 90 per cent foreign ownership following the government’s decision to raise the foreign direct investment (FDI) limit in the insurance sector to 100 per cent
Mumbai:Global investment firm Blackstone has partnered with former HDFC ERGO Managing Director and Chief Executive Officer Anuj Tyagi to establish a new general insurance company in India, marking a significant milestone in the country’s insurance sector.
The proposed venture is expected to become the first new insurance company with up to 90per cent foreign ownership following the government’s decision to raise the foreign direct investment (FDI) limit in the insurance sector to 100 per cent.
The company has submitted its R1 application to the Insurance Regulatory and Development Authority of India (IRDAI), seeking in-principle approval to set up the insurer. The application is currently under review by the regulator.
The move underscores growing confidence among global investors in India’s expanding insurance market.
IRDAI Chairman Ajay Seth said the government’s decision to permit 100 per cent FDI in insurance has generated strong interest from global insurers. He noted that the regulator has already approved several new insurance licences, with more applications under consideration.
Seth further revealed interest from overseas investors has been particularly strong in the general insurance segment.
The proposed greenfield venture comes even as Blackstone has recently expanded its footprint in India’s insurance ecosystem through a major acquisition in the re/insurance intermediary business.
Earlier,in one of the largest transactions in the Indian re/insurance broking sector, the US-based investment giant has acquired a controlling stake in Ace Insurance Brokers, a domestic re/insurance broker known for arranging large insurance programmes for the Adani Group.
Blackstone has acquired a 70 per cent stake in the firm, founded by Raj Vinay Ajmera and Anil Arora, in a deal valued at more than Rs 1,700 crore.