UK’s JLT hikes stake in JV, buys Vantage Insurance

Mumbai: In the first M&A transaction in the insurance broking space after relaxation of FDI norms, UK’s JLT (Jardine Lloyd Thomson) group has hiked stake in its Indian joint venture JLT Independent to 49% from 26%. Simultaneously, it also acquired the business of domestic broking company Vantage Insurance Brokers.
The insurance broking market is dominated by US companies like Marsh and Aon along with UK’s Howden, which are present in India through joint ventures.Vantage Insurance operates one of India’s largest employee benefits insurance portfolios with services that include insurance broking, health risk advisory and benefits consulting.
Speaking to TOI, Sanjay Radhakrishan, CEO of the UK broker’s Indian JV, said that the group has the distinction of being the first global broker to increase its stake in India. Although the partners have not disclosed the Vantage deal size, Radhakrishan said post-acquisition the valuation of the merged entity will cross Rs 100 crore.
Balamurugan Vishwanathan, the group’s chief operating officer at UK, said, “The purchase is in the nature of a portfolio acquisition. The company’s 175 employees, their portfolio of 600 customers and their Rs 450-crore business will be part of JLT Independent.” Arvind Laddha, founder of Vantage, has been appointed deputy CEO and, subject to regulatory approval, a board member of JLT Independent.
Vantage’s portfolio with premium of Rs 450 crore is currently larger than that of JLT Independent, which does business of around Rs 350 crore. But according to Vishwanathan, given the pace of growth in the company’s core business, the specialist line would soon grow to be bigger than the employee benefits portfolio.