U.S. insurer Medlife Inc. on Monday said it would increase stakes in its Indian joint venture, using the increased limit on foreign companies’ investment in the country’s insurance sector, which was announced earlier this year.
Medlife has signed an agreement with IGE India and Elbro International to acquire a 15.27 per cent stake in BNP Medlife India Insurance Company Limited.
The deal will increase Medlife’s stake in BNP Medlife by more than 47 percent. Foreign institutional investors are allowed to own up to 74 per cent of private insurance companies, up from 49 per cent in India.
The loose cap announced by Finance Minister Nirmala Sitharaman in her budget speech for 2021-22 is expected to attract input from US and European insurers.
PNB MedLife is a leading life insurance company with over 200 million customers in over 15,000 sales locations.