Carlyle acquires stake in SBI Life
Investment firm The Carlyle Group has announced it has acquired a nine percent stake in SBI Life Insurance Company Ltd. SBI Life is the life insurance subsidiary of the State Bank of India. Carlyle’s equity for this investment came from CA Emerald Investments, an affiliated entity of Carlyle Asia Partners V, Carlyle’s flagship USD6.55 billion fund focused on buyout and strategic investments across a range of sectors in Asia Pacific.
Following this transaction, BNP Paribas Cardif and CA Emerald Investments now own 12.8 percent and 9.0 percent of the company, respectively, while SBI remains the majority shareholder with a 62.1 percent stake in the company.
Dinesh Kumar Khara, managing director, Global Banking & Subsidiaries, SBI, said, “We are pleased with the tremendous strides made by SBI Life in establishing its position in the life insurance industry and appreciate the support given by BNP Paribas Cardif in this journey. We are also thrilled to welcome Carlyle, with whom we have an existing relationship through SBI Card, and look forward to its support to SBI Life in bolstering its franchise in the country.”
Sanjeev Nautiyal, managing director and CEO of SBI Life, said, “We are delighted to have Carlyle, a highly-regarded long-term investor, as a shareholder of the company. Carlyle’s trust in the company will further strengthen our resolve to enhance our leadership position in India’s life insurance industry through a single-minded focus on quality customer experience.”
Sunil Kaul, managing director of the Carlyle Asia Buyout advisory team, said, “The life insurance industry in India has strong growth potential thanks to favorable demographics and an increasing focus on financial savings. SBI is the most trusted brand in financial services, with an unparalleled nationwide branch network and a commitment to providing convenient access to quality financial services to every Indian. SBI Life, led by a strong management team, is helping deliver this promise in the life insurance space and is well-positioned to further benefit from industry trends. We are excited about the company’s growth prospects and proud to have this opportunity to support the journey.”
Carlyle has invested in the financial services industry in Asia Pacific for 20 years, deploying more than USD4 billion of equity in more than 15 private equity investments as of December 31, 2018.
