Carlyle-GIC consortium eyes stake in SBI Life Insurance
Photo Credit: VCCircle

US-based private equity giant The Carlyle Group will team up with Singapore’s sovereign wealth fund GIC to pick up a 10% stake in SBI Life Insurance Company Ltd from insurer BNP Paribas Cardif, according to a media report.

BNP Paribas Cardif is selling the stake to meet regulatory norms for a public float.

Citing two people aware of the development, The Economic Times reported that a consortium of Carlyle and GIC will buy shares at Rs 510-520 apiece. The total deal size is Rs 5,100-5,200 crore.

The investment proposal is awaiting approval from the Insurance Regulatory and Development Authority (IRDA), the report said.

BNP Paribas, Kotak Mahindra Capital and Citigroup have been asked to manage the share sale.

BNP Paribas Cardif is the life, property and casualty insurance subsidiary of French bank BNP Paribas. It holds a 22% stake in SBI Life.

State Bank of India holds a 62.1% stake in SBI Life. The insurer made its stock market debut in October 2017.

In October, Reuters reported BNP Paribas plans to pare stake in SBI Life to meet regulatory requirements.

Incorporated in 2001, SBI Life is a joint venture between State Bank of India and BNP Paribas Cardif.

SBI Life’s total income stood at Rs 33,761 crore for the year through March 2018, up from Rs 30,276 crore the previous year. Profit after tax rose to Rs 1,150 crore from Rs 955 crore during the period.

In December 2016, SBI had sold a 3.9% stake in SBI Life to Singapore state investment firm Temasek Holdings (1.95%) and private equity giant KKR (1.95%) for Rs 1,794 crore ($265 million).

Separately, state-run Oriental Bank of Commerce is planning to divest its stake in its life insurance joint venture Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

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