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LeapFrog sells minority stake in Mahindra Insurance Brokers to XL Group

Private equity firm LeapFrog has sold its 20 per cent minority stake in Mahindra Insurance Brokers Ltd (MIBL), to XL Catlin, a subsidiary of XL Group.

MIBL is a subsidiary of Mahindra & Mahindra Financial Services Ltd.
 
Since inception in 2004, MIBL has serviced over eight million insurance cases, safeguarding the livelihoods of millions across rural India by protecting their assets and loans taken for buying tractors and vehicles.
 
Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance, President – Financial Services Sector and Member of the Group Executive Board of the Mahindra Group, says: “Mahindra Finance is one of the largest Non-Banking Financial Companies in India, with a focus on rural and semi-urban markets. The investment by XL Group, a leading global insurance and reinsurance group with expertise in emerging markets, will help increase insurance penetration and drive positive change in the lives of rural India. We would like to thank LeapFrog for partnering with us earlier in our shared mission of industry leadership and social impact.”
 
Greg Hendrick, President, P&C Insurance and Reinsurance, XL Catlin, says: “This minority investment plays to our commitment to emerging markets and to supporting insurance penetration in developing economies, helping improve economic resilience by closing the gap between economic and insured losses. It will also provide us a chance to better understand the primary retail insurance and distribution landscapes in the rapidly developing Indian market.”
 
Jaideep Devare, Managing Director, Mahindra Insurance Brokers Limited, says: “MIBL has been adding value to customers across rural India through its innovative solutions and superior services. We want to introduce insurance ideas from the global markets, suitably adapted for the Indian market. MIBL would continue to focus on the rural and semi-urban areas, where insurance penetration is low and the need for social and economic progress that insurance inclusion can bring is high. We will welcome XL Group as a valuable partner to drive dialogue on these efforts.”
 
XL Group has a large shared service operation presence in India, at Gurugram and Bengaluru, operating under the brand XL Catlin. It provides business and underwriting support, claims administration, actuarial services, finance and accounting, and more. The Group also has a fully licensed reinsurance branch office also operating under the XL Catlin brand, in Mumbai.
 
The Mahindra Group has a significant footprint in rural India through the sale of utility vehicles, tractors, commercial vehicles, two-wheelers, and rural home loans. Mahindra Finance’s rural financing is considered to be the cornerstone of poverty reduction, rural development and inclusive growth in many parts of the country.
 
Mahindra Finance has been serving the rural and semi-urban population by providing loans to low income groups through its extensive network of branches spreading over 1,100 locations in these geographies. Leveraging on these strengths, MIBL aims to become India’s first company to rank among the Global Top 100 insurance brokers in revenue by 2020.

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