US-based private insurance broker Lockton has received approval from Indian insurance regulator IRDAI to fully acquire Arihant Insurance Broking Services for a consideration of $500,000 (Rs 4.4 crore).
Arihant Insurance Broking Services is part of the Arihant Capital Group.
This acquisition marks Lockton's strategic expansion into the Indian market, where it aims to tap into opportunities in advanced risk consulting and management services.
As a matter of group strategy, Arihant Capital Markets decided to sell its insurance broking business to focus on its core equity broking arm and exploring other business opportunities. Lockton's acquisition of the insurance broking business gives it a launchpad to begin its operations in India.
The two entities had entered into a share purchase agreement in June. In a filing to the exchanges, Arihant Capital said the transaction was completed as of 24 October and Lockton had become the sole owner of Arihant Insurance.
Lockton is targetting to ramp up its presence in key emerging markets. At present, it has over 135 offices globally.
This acquisition further solidifies Lockton’s market presence and enhances its ability to serve a broader range of clients with comprehensive risk management and insurance solutions.
Sandeep Dadia, CEO and country head for Lockton India, said: “We are excited to receive the approval at a time when there is a significant demand for robust risk management solutions.”
Lockton's private ownership enables its 12,500+ associates in over 150 countries to focus solely on clients' risk and insurance needs.
Arihant group, a diversified financial services provider, has various lines of business such as equities, merchant banking, financial planning and wealth management, and strategic advisory, among others.
According to data from VCCEdge, the data intelligence platform of VCCircle, Arihant Capital had net revenue of Rs 235 crore as of March 2024, and a net profit of Rs 68.4 crore. It had an EBITDA of Rs 106 crore.
