KOCHI: Federal Bank has completed the acquisition of an additional 4 per cent stake in Ageas Federal Life Insurance Co Ltd (AFLIC) from its foreign partner Ageas Insurance International NV, raising its total holding in the life insurer to 30 per cent.
The deal, executed on October 31, follows the Reserve Bank of India’s (RBI) approval for the purchase, valued at up to Rs105 crore.
In a stock exchange filing, the bank said it had earlier signed a binding Memorandum of Understanding (MoU) with Ageas and AFLIC, and has now completed the transaction after fulfilling the necessary conditions and approvals.
Ageas Federal Life Insurance is a joint venture between Ageas, a multinational insurance group headquartered in Europe, and Federal Bank. The venture combines Ageas’s global expertise with Federal Bank’s extensive domestic distribution network.
With the increased stake, Federal Bank is expected to strengthen its influence in the life insurance venture and enhance its presence in the financial services ecosystem through greater integration of insurance products across its customer base.
The bank said the investment aligns with its long-term strategy to deepen participation in the insurance sector, which continues to show strong growth potential in India.
