Denying market rumours and speculation of any stake sale, Liberty General Insurance today announced that it has recently received a fund infusion of Rs. 100 crore from its promoters.
"Liberty General Insurance' promoters, Liberty Mutual Insurance Group, Enam Securities, and DP Jindal Group remain confident of the company's ability to build a substantial business in India. With a further infusion of additional capital of Rs.100 crore made in July 2020 by its promoters, the total invested capital including share premium is now Rs.1,834 crore. This fresh infusion of capital by the promoters amidst prevailing difficult economic situation in the country indicates their commitment and confidence in Liberty General's ability to grow profitably for many years to come," said Mr. Roopam Asthana, CEO & Whole Time Director, denying media reports that suggested any stake sale.
Liberty General Insurance (LGI) had undergone a shareholding change in February 2018 and consequently the current promoters are subject to a lock in period of 5 years as stipulated by the regulator. The company has undergone several rounds of capitalization thereafter and is financially strong with solvency ratio of 2.65 (as on June 30, 2020) as against required regulatory solvency ratio of 1.5 indicating adequate capital support for planned growth.
On overall business, the company registered YOY growth of over 36% for the year ended 31 Mar 2020. The company offers motor, health and personal accident covers apart from commercial, fire, engineering and marine insurance.
The company has also recently launched a new product viz. Liberty Critical Connect (Critical Illness Health Insurance) and an innovative service offering, Liberty Assure, under the regulatory sandbox mechanism.