BNP Paribas Cardif on Friday said it will acquire a 26 per cent stake in IndiaFirst Life Insurance from Warburg Pincus, subject to regulatory approvals.
Post completion of the transaction, IndiaFirst Life’s shareholding will comprise Bank of Baroda’s 65 per cent stake, BNP Paribas Cardif’s 26 per cent stake and Union Bank of India’s 9 per cent stake.
In a release, the companies said that with Bank of Baroda’s strong branch network, IndiaFirst Life’s multi-channel distribution strength and BNP Paribas Cardif’s global bancassurance expertise, product innovation and insurance capabilities, the shareholders aim to accelerate IndiaFirst Life’s next phase of growth.
Pauline Leclerc-Glorieux, chief executive officer (CEO) of BNP Paribas Cardif, said, “This transaction will further drive our international growth strategy of partnering with strong institutions in high-potential markets. We will leverage our global bancassurance and partnership expertise to support the next phase of development of IndiaFirst Life in India, with a focus on enhancing the accessibility of insurance products for the Indian population.”
“For BNP Paribas Cardif, the transaction marks a further step in its international growth and diversification strategy, while strengthening its presence in Asia, particularly in India, a strategic market offering compelling long-term growth opportunities. It reinforces BNP Paribas Cardif’s partnership-led business model and strengthens its position in a dynamic insurance market,” the press release said.
Debadatta Chand, chairman of IndiaFirst Life and managing director and chief executive officer (MD & CEO) of Bank of Baroda, said, “This transaction represents a meaningful step in IndiaFirst Life’s long-term strategic journey and reflects the reinforced commitment of its shareholders to the company’s continued growth. With BNP Paribas Cardif joining us as a partner, we are extending a relationship that has already proven successful through our joint venture in asset management, and we look forward to leveraging their global insurance expertise alongside Bank of Baroda’s extensive distribution franchise and deep local market insights. Together, we remain focused on broadening access to quality protection and savings solutions for customers across India.”
Previously, BNP Paribas Cardif exited its joint venture with State Bank of India (SBI) in SBI Life Insurance. Its latest investment in the Indian market follows reforms in the insurance sector and the government’s decision to allow 100 per cent foreign direct investment (FDI) in the sector.
IndiaFirst Life Insurance is a private life insurer that filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) in October 2022 and received the regulator’s nod in March 2023.