Mitsui Sumitomo Insurance (MSI) has announced the increase of its stake in Cholamandalam MS General Insurance Company (Chola MS) to 40%. For this purpose, the Japanese firm has concluded an agreement with the Tube Investments of India (TII) group in order to regain a 14%-share in the non life insurer.
Following this transaction which has reached 8.8 billion INR (133.7 million USD), the MSI’s share in Chola MS will increase from 26% to 40% with TII retaining the remaining 60%.
Since the vote of the law concerning the increase in the threshold of participation by foreign insurers to 49% in local companies, around 110 billion INR (1.67 billion USD) of transactions have been recorded by the Indian insurance market.
The record is held by Nippon Life Insurance with 22.65 billion INR (344.11 million USD) put on the table to increase its stake in Reliance Life Insurance to 49%.