Belgium-based Ageas is targeting a top ten spot in India’s insurance market and is willing to examine acquisition options when suitable opportunities emerge, the Times of India (ToI) reported.
The plan follows earlier steps by the Belgian insurer, including raising its holding to more than 70% in an Indian life insurance venture in September 2022 and buying a 40% stake in Royal Sundaram General Insurance.
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These moves form part of the company’s wider Asian strategy covering nine markets, where the group already ranks among the top five in several countries, noted the news publication.
Speaking to ToI, Ageas Group chief executive Hans De Cuyper said India remains one of the company’s priority markets, with attention centred on expanding current operations rather than pursuing an exit.
Ageas Federal Life is ranked around 12th in life insurance, while Royal Sundaram General is around 15th in non-life insurance.
Together with Federal Bank, the group is aiming for a top ten standing in life insurance.
He said: “India is a key growth market for us, and our priority is to scale up our existing businesses rather than look at exits.
“We are growing faster than the market and remain open to inorganic opportunities or new distribution to accelerate this journey.”
He further added: “As long as returns are attractive, we will continue to deploy capital to support growth,” while dismissing any near-term listing plans, adding, “we are long-term investors and are not considering IPOs or exits at this stage”.
On distribution, De Cuyper said bancassurance continues to be a core part of the company’s India approach, despite regulatory scrutiny over mis-selling.
“Bancassurance remains a strong and relevant model, as banks are well placed to offer integrated financial advice,” he said, adding that “concerns around misselling are valid, but they are not unique to bancassurance”.
He said pricing in India’s insurance sector is supported by the market’s growth prospects rather than being excessive.
“The elevated multiples underscore the significant growth opportunity in the market,” he said, noting that in time “margins are expected to benefit from scale given the fixed-cost nature of the business”, along with a move towards higher-margin protection products.
He also pointed to “significant headroom” in retirement and pension businesses and said the group would consider entering that area “if the right opportunity arises”.
De Cuyper welcomed regulatory change, saying the move to risk-based capital and International Financial Reporting Standards (IFRS), especially IFRS 17, is “a positive move” that will “improve transparency and provide a clearer view of the intrinsic performance of long-term insurance businesses”.
As for products, he said unit-linked insurance plans (ULIPs) are changing under tighter oversight.
“ULIPs are an evolving segment, and it is encouraging to see regulation moving in the right direction,” he said.
On commissions, he said regulation should take a balanced approach.
