Bharti AXA Life Insurance plan SPV

The Indian insurance sector will witness a new entrant, Bharti AXA Life Insurance. The French insurance major, AXA, the world’s largest insurer is all set for its joint venture with Bharti Group. The stake held will be 74:26. It is soon expected to start its operations. It also has plans to invest Rs 500 crore in the coming few years. However, AXA’s venture will be a two tier holding structure with a direct holding of 22.2% equity and the rest through Special Purpose Vehicle (SPV). Both the entities have formed an SPV of Rs 190 crore. The stake held will be 90% and 10% by Bharti and AXA respectively as a part of the plan to form a Special Purpose Vehicle (SPV) of Rs 190 crore. The investments in this joint venture will be shared by AXA India holdings (Mauritius), Bharti Enterprises Private and the Bharti Group Company. The shareholding structure will be 22.22%, 40% and 37.78%, respectively. Bharti SPV will act as an investment holding company of the JV.