Sundaram Finance, Ageas Insurance conclude deal after necessary approvals

Non-banking finance company Sundaram Finance Ltd Friday said the non-life insurance joint venture transaction between its subsidiary Royal Sundaram and Ageas Insurance International N V was successfully completed following the approvals from insurance regulators. Sundaram Finance and Ageas Insurance International N V signed a joint venture transaction in November 2018 in which Ageas acquired 40 per cent of the share capital of Royal Sundaram General Insurance Company Ltd.

Following the divestment in Royal Sundaram, the stake of Sundaram Finance Ltd in the entity would come to 50 per cent while the existing shareholders would hold 10 per cent. Commenting on the outlook of the joint venture, Sundaram Finance Ltd managing director T T Srinivasaraghavan said, "Like Sundaram Finance, Ageas is a retail-focused company with a strong Asia presence".

"As part of the go-to-market strategy of the JV firm, we are confident of tapping into their expertise and leveraging some of their best practices in claims management, automation in underwriting", he said. The new joint venture would also retain the Royal Sundaram brand name.

Sundaram Finance Ltd manages assets over Rs 30,000 crore and has 650 branches across the country. On the performance of Royal Sundaram, Srinivasaraghavan said, "The existing management team will continue at Royal Sundaram. Two executives from Ageas will be joining the Royal Sundaram's team to work in specific areas where they can add value to the business."