Edelweiss Group on Monday announced the divestment of its majority stake in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL) after approval from the Insurance Regulatory and Development Authority of India (IRDAI).

On receipt of the necessary approvals, the company, has in the first tranche, transferred 61 per cent of the stake held by the company in EGIBL to Arthur J Gallagher and Company (AJG) on October 18, 2021, Edelweiss Group said in a stock exchange filing.

“Consequently, AJG now owns 91 per cent of EGIBL, as a result of which EGIBL has ceased to be the subsidiary of the company,” it further said.

Gallagher and Edelweiss had announced the transaction in July 2021 under which Gallagher, which previously held 30 per cent stake in the business, bought out the 70 per cent stake of Edelweiss Group in the company.

“The business will transition to the Gallagher brand in the coming months,” Edelweiss Group said in a statement, adding that it will will focus on growing its life and non-life insurance businesses, which have been among the fastest-growing in the industry.

Rashesh Shah, Chairman, Edelweiss Group said, “This move brings to us the flexibility to reallocate capital, which post this transaction and the strategic partnership in our Wealth Business, is ample. We now have adequate capital and a stronger balance sheet and look forward to scaling up our fast-growing life and non-life insurance businesses, as India turns a corner post the Covid pandemic.”