STRATEGIC PARTNERSHIP WITH XL GROUP

XL Group, a leading global insurer and reinsurer operating under the XL Catlin brand acquired a 20% minority stake in Mahindra Insurance Brokers (MIBL) in October 2017. MIBL is a licensed Composite Broker and has demonstrated noteworthy growth and profitability over the past 13 years. Started with an initial capital of Rs. 50 lakhs, MIBL’s current valuation is at Rs.1,300 crores (approx. US$ 200 million).

The previous shareholder in MIBL, LeapFrog Financial Inclusion Fund, through its subsidiary Inclusion Resources Private Ltd (IRPL), held a 15% equity stake in MIBL. It purchased an additional 5% stake in MIBL from Mahindra Finance (taking its total equity stake in MIBL to 20%), and immediately sold the entire capital of IRPL to XL Group, subject to necessary regulatory approvals.

Since inception in 2004, MIBL has serviced over 8 million insurance cases, safeguarding the livelihoods of millions across rural India by protecting their assets and loans taken for buying tractors and vehicles.

XL Group will help support MIBL’s endeavours to increase insurance awareness and penetration in under-penetrated markets and across under-served customers in rural India. It 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.

This investment is part of XL Group's emerging markets strategy to support insurance penetration in these economies, helping improve economic resilience by closing the gap between economic and insured losses. It will also provide them a chance to better understand the primary retail insurance and distribution landscapes in the rapidly developing Indian market.