Muthoot Finance completes acquisition of Muthoot Insurance Brokers

21 June, New Delhi

Muthoot Finance Ltd Tuesday announced that it has completed the acquisition of Muthoot Insurance Brokers Pvt Limited (MIBPL) by transfer of equity shares from its existing shareholders for a consideration of Rs 20 crore, making MIBPL a wholly owned subsidiary of Muthoot Finance.

Approval for the transfer of shares has been received from Reserve Bank Of India and Insurance Regulatory and Development Authority Of India subsequent to which the transaction is completed, said a statement by the company.

MIBPL is an unlisted private limited company holding a license to act as Direct Broker from IRDA since 2013. It is actively distributing both life and non-life insurance products of various insurance companies.

During Financial Year 2015, it insured more than 2,92,000 lives with a premium collection of Rs 35 crore under Traditional, Term and Health products. The same has increased to 4,59,000 lives with a premium collection of Rs 49 crore in Financial Year 2016.

George Alexander Muthoot, MD, Muthoot Finance Ltd, said, “By acquiring MIBPL as a wholly owned subsidiary of Muthoot Finance, we are further diversifying our bouquet of investment products for our customers as well as fee based income earning activities. We are expecting shareholders to benefit through this acquisition in future as the company has a large customer base.”

Thomas P Rajan, Director, MIBPL, stated, “By becoming a wholly owned subsidiary of Muthoot Finance, we will be able to serve customers of Muthoot Finance as well as scale up our distribution activities across the nation.”