The Insurance Regulatory and Development Authority of India (IRDAI) on Friday gave, in-principle, its nod for the merger of Bharti AXA General Insurance Company’s non-life insurance business with ICICI Lombard General Insurance Company Limited.

The deal was announced earlier in August this year and they have already received approval from the Competition Commission of India (CCI) which came on November 2, 2020, along with the issuance of the Observation Letters by BSE Limited and the National Stock Exchange of India Limited, on November 2, 2020 and November 3, 2020 respectively.

The combined establishment is expected to have a market share of 8.7 per cent on a pro forma basis in the non-life business.

"ICICI Lombard is progressing applications for receipt of requisite approvals from other concerned regulators for the transaction," the insurer said in its press release.

"The proposed transaction is expected to result in value creation for all stakeholders through meaningful revenue and operational synergies. Further, policyholders should benefit from an enhanced product suite and deeper customer connection touchpoints. The employees of the combined business will also benefit via greater opportunities across functions and geographies," the company further said.

ICICI Lombard would now look to attain approvals from SEBI and RBI among other bodies. It was earlier reported that Bharti AXA's shareholders will receive two shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date on which the scheme of arrangement is approved by the Board of Directors of ICICI Lombard and Bharti AXA.

Bharti Enterprises at present owns 51 per cent stake in Bharti AXA General Insurance, and French insurer AXA owns the remaining 49 per cent.