ICICI Bank sells part stake in insurance firms for Rs 2200 crore

Private sector ICICI Bank on Friday said it has sold 9% stake in its general insurance venture ICICI Lombard while 2% stake in life insurance subsidiary ICICI Prudential for about Rs 2,200 crore.

The bank has sold 9% shareholding in ICICI Lombard General Insurance Company to its joint venture partner Fairfax Financial Holdings, ICICI Bank said in a statement. "Following the receipt of the requisite approvals, the bank completed the transfer of the shares on March 31,," it said.

Prem Watsa-run Fairfax Financial Holdings acquired an additional 9% stake in ICICI Lombard General Insurance Company for an estimated Rs 1,550 crore. The transaction values the company at Rs 17,225 crore.

Following the transaction, Fairfax holding has gone up to 35% in ICICI Lombard. In another stake transfer, ICICI Bank sold 2% stake in ICICI Prudential Life Insurance Company to Compassvale Investments Pte Ltd, an indirectly wholly-owned subsidiary of the Singapore-based investment Company, Temasek.

The 2% stake sale has fetched ICICI Bank about Rs 650 crore. The transaction values the company at Rs 32,500 crore. Following completion of the transaction, ICICI Bank will hold approximately 68% share of the company. Prudential Plc, the foreign joint venture partner will maintain its current holding of approximately 26%.