Stock Report

Edelweiss announces divestment of its Insurance Broking business

Posted On : 2021-10-18 17:39:54( TIMEZONE : IST )

Edelweiss announces divestment of its Insurance Broking business

Edelweiss Group, India's leading diversified financial services firm today announced the divestment of its majority stake in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL), post approval from the Insurance Regulatory and Development Authority of India (IRDAI). The business will transition to the Gallagher brand in the coming months. Edelweiss Group will focus on growing its life and nonlife insurance businesses, which have been among the fastest growing in the industry.

Gallagher and Edelweiss had announced the transaction in July 2021, cementing a partnership that was forged between the two in May 2019, giving clients access to a larger suite of insurance products and services and scaling up the business significantly.

Speaking on the development, Rashesh Shah, Chairman, Edelweiss Group said "At Edelweiss, we have always been driven by long-term value creation, seeding, nurturing businesses, forging partnerships at the opportune time to build scale. We have enjoyed an excellent relationship with the Gallagher team and we believe that they will add lot more value to the business and give it a global edge."

"This move also brings to us the flexibility to reallocate capital, which post this transaction and the strategic partnership in our Wealth Business, is ample. We now have adequate capital and a stronger balance sheet and look forward to scaling up our fast-growing life and non-life insurance businesses, as India turns a corner post the pandemic", he added.

Shares of Edelweiss Financial Services Limited was last trading in BSE at Rs. 81.00 as compared to the previous close of Rs. 79.65. The total number of shares traded during the day was 260338 in over 2416 trades.

The stock hit an intraday high of Rs. 83.50 and intraday low of 80.00. The net turnover during the day was Rs. 21328955.00.

Source : Equity Bulls


EdelweissFinancialServices INE532F01054 FinancialServices StakeSale