Aon buys 49% in Catamaran-owned insurance broker

Mumbai: Global insurance giant Aon has acquired a 49% stake in Anviti Insurance Brokers, owned by former Infosys chairman Narayana Murthy’s institutional investment firm Catamaran Ventures.

Sandeep Malik, CEO of Aon Asia-Pacific, told ET that the deal with Catamaran was the first of several tranches that would see it acquire the insurance broking firm completely over the next few years.

The deal, priced at an undisclosed value, was a “discounted one” and the freshly infused capital will be used for business growth and development of Anviti, which will soon be rebranded as Aon India, Malik added. “We see India becoming the top five insurance markets in the world over the next decade,” he said. “In the medium term, we are aspiring to bring 10% of our business from India, which would put it at par with our significant global markets such as the US, Japan and the UK.”

The long-pending move had been stalled previously due to India’s stringent foreign investment norms that capped foreign direct investment in insurance intermediaries at 49% subject to compliances such as cooling-off periods.

The rules were amended in February 2020 and now allow foreign businesses to acquire up to 100% stake in an insurance intermediary business. FDI is still capped at 49% for licensed insurance companies. “The liberalisation of FDI norms will give a massive step-up to the penetration of insurance in India,” said Malik. “A thriving broking market in India can amplify its economic growth.”

Aon specialises in providing health, life, pension and related insurance services to companies around the world. It has over 50,000 employees in 120 countries. The company gained global familiarity as the official kit sponsor of English Premier League club Manchester United for several years last decade.

Anviti Brokers was licensed in 2017. Currently, it processes ₹1,200 crore in annual premiums specialising in health and wellness, property and liabilities related covers for businesses in India.

Source: The Economic Times

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