Future Generali to merge with L&T General Insurance

Larsen & Toubro (L&T), Generali Group and Future Group today entered into a non-binding agreement to merge L&T General Insurance with Future Generali India Insurance.

Post-merger, L&T will hold 51 per cent in the merged entity with Generali will hold 26 per cent stake and the rest 23 per cent will continue to be held by the Future Group.

At present, Future Generali is a joint venture between Future Group and Italy’s Generali in which the foreign partner holds a 26 per cent stake – the maximum allowed as per the existing foreign direct investment norms in the sector. Pantaloon Retail, a Future Group firm, holds around 50 per cent stake in the venture, while the rest is with a promoter group entity, Sprint Advisory Services.

After the merger, L&T will hold a 51 per cent stake and Future Group 23 per cent in the new entity, while the foreign partner will maintain its 26 per cent holding, according to the deal structure.