Digital insurer agrees to buy 100% of sole local privately held reinsurer
Digital Insurer acquiring 100% shares of private reinsurer
Go Digit has entered into a share purchase agreement to acquire all equity shares of ITI Reinsurance, India's only domestic privately held reinsurer.
The deal is said to be worth about INR5 billion ($73 million), said a person familiar with the deal.
ITI Re obtained its licence in December 2016 and has a capital base of INR5 billion.
Go Digit Infoworks Services will hold the shares, including 21,74,40,000 equity shares of INR10 each fully paid of ITI Reinsurance held Investment Trust of India, according to a filing with the Bombay Stock Exchange on 26 June.
The deal is subject to prior approval of the IRDAI.
Go Digit General Insurance, incorporated in 2016 and based in Bengaluru, offers non-life insurance through their digital platform. Canada's Fairfax Financial has a 45% stake in the online insurer.