Legal & General Group PLC agreed in principle to sell its stake in IndiaFirst Life Insurance Co. Ltd. to an affiliate of U.S.-based private equity firm Warburg Pincus LLC for 7.11 billion Indian rupees, or roughly £79 million.
The deal, which is subject to regulatory approval, is expected to complete by 2018-end.
Legal & General expects a pretax profit of about £45 million and a marginal improvement in its Solvency II coverage ratio upon completion of the transaction.
Mumbai-based IndiaFirst is a joint venture between Legal & General, Bank of Baroda and Andhra Bank, which hold stakes of 26%, 44% and 30%, respectively, in the firm. As of March 31, IndiaFirst had more than 126.22 billion rupees, or roughly £1.4 billion, in AUM.
As of May 31, US$1 was equivalent to 67.45 Indian rupees.
