TIDMLGEN
RNS Number : 9804P
Legal & General Group Plc
01 June 2018
Legal & General Group Plc
1 June 2018
Legal & General to sell stake in IndiaFirst Life to Warburg
Pincus
Legal & General Group Plc ("Legal & General") has
reached agreement in principle with an affiliate of Warburg Pincus
LLC ("Warburg Pincus") to sell Legal & General's stake in
IndiaFirst Life Insurance Company Limited ("IndiaFirst Life") to
Warburg Pincus for INR 710.54 crores (c.GBP79m at GBP:INR
1:90).
On disposal, the consolidated Legal & General Group accounts
will show a pre-tax profit of approximately GBP45m and the disposal
will also result in a marginal improvement in the Solvency II
coverage ratio.
Simon Burke, Group Commercial Director, Legal & General
said: "Legal & General is proud to have been a founding member
of IndiaFirst Life and to have helped steer the company to its
current position in the market, aided by the strong support of our
joint venture partners, Bank of Baroda and Andhra Bank. Legal &
General has refocused its insurance business in recent years on the
UK and the US and as a consequence we have disposed of a number of
operations, including our businesses in the Netherlands, Ireland,
France, Egypt and the Gulf. We are now following this strategy in
relation to our stake in IndiaFirst Life. We are delighted to have
reached an agreement in principle with Warburg Pincus, subject to
regulatory approvals".
Narendra Ostawal, Managing Director, Warburg Pincus, said:
"IndiaFirst Life has demonstrated remarkable performance over the
last few years, and we are excited to be partnering with Bank of
Baroda and Andhra Bank to support the continued growth of the
company and to help create value for all stakeholders. We look
forward to backing R.M. Vishakha and the management team of
IndiaFirst Life, and supporting them to create one of India's
leading life insurance companies."
R.M. Vishakha, Managing Director and CEO, IndiaFirst Life, said:
"Legal & General has been an extremely supportive partner and
an integral part of our growth journey. As we enter a new phase of
growth, we welcome Warburg Pincus as a shareholder to support our
drive towards value creation. We are truly fortunate that both our
shareholding banks are confident and supportive of our plans. We
look forward to continued strong growth under the combined guidance
of our shareholders."
The transaction is subject to the approval of regulatory
authorities and is expected to complete by the end of 2018.
IndiaFirst Life is a joint venture between Bank of Baroda (44%
stake), Andhra Bank (30% stake) and Legal & General (26%
stake). Founded in 2009, IndiaFirst Life is headquartered in Mumbai
and R.M. Vishakha has been MD and CEO since April 2015. IndiaFirst
Life is present in over 1,000 cities across India and has a range
of products addressing customer needs in health, protection,
retirement, savings and wealth management. IndiaFirst Life had over
INR 12,622 crore (c.GBP1.4bn) of assets under management as at 31
March 2018.
ends
For further information, please contact:
Investors:
Sujee Rajah Vice President, Group Investor Relations and Strategy +1312 964 3034
Alyssa Manning Investor Relations Manager 020 3124 2047
Media:
John Godfrey Corporate Affairs Director 020 3124 2090
Graeme Wilson Tulchan Communications 020 7353 4200
CONTACT WARBURG PINCUS:
Malini Roy Citigate Dewe Rogerson +91 22 66451234
Notes to editors:
Legal & General Group Plc:
1. Established in 1836, Legal & General is one of the UK's
leading financial services groups and a major global investor, with
a number of growing businesses in the US and in other countries. At
31st December 2017, we had GBP983 billion in total assets under
management.
2. We work with companies and pension trustees to help people
build security in retirement, being the UK's largest investment
manager for UK corporate pension schemes, a major provider of
auto-enrolled pensions and a market leader in pensions de-risking.
As at 31st December 2017, we have committed over GBP14bn into
direct investments in areas such as housing, urban regeneration,
clean energy and small business finance, driving economic growth
and making a positive difference to the UK's built environment.
3. http://www.legalandgeneralgroup.com/investors/adr.html
For more information on Legal & General, please see
http://www.legalandgeneralgroup.com/
Forward-looking statements
This announcement may contain certain forward-looking statements
relating to Legal & General, its plans and its current goals
and expectations relating to future financial condition,
performance and results. By their nature, forward-looking
statements involve uncertainty because they relate to future events
and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and
business conditions, market related risks such as fluctuations in
interest rates and exchange rates, the policies and actions of
regulatory and Governmental authorities, the impact of competition,
the timing impact of these events and other uncertainties of future
acquisition or combinations within relevant industries. As a
result, Legal & General's actual future condition, performance
and results may differ materially from the plans, goals and
expectations set out in these forward-looking statements and
persons reading this announcement should not place reliance on
forward-looking statements. These forward-looking statements are
made only as at the date on which such statements are made and
Legal & General Group Plc does not undertake to update
forward-looking statements contained in this announcement or any
other forward-looking statement it may make.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DISDMGGVNMLGRZG
(END) Dow Jones Newswires
June 01, 2018 04:00 ET (08:00 GMT)
Legal & General (LSE:LGEN)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Legal & General (LSE:LGEN)
Historical Stock Chart
Von Jul 2023 bis Jul 2024