Liberty General Insurance refutes stake sale rumours

In a statement, the company said: “Liberty General Insurance’ promoters, Liberty Mutual Insurance Group, Enam Securities, and DP. Jindal Group remain confident of the company’s ability to build a substantial business in India.

“With a further infusion of additional capital of Rs 100 crore made in July 2020 by the promoters, the total invested capital including share premium is now Rs 1,834 crore.”

“This fresh infusion of capital by the promoters, amidst prevailing difficult economic situation in the country, indicates their commitment and confidence in Liberty General’s ability to grow profitably for many years to come,” said Roopam Asthana, CEO & Whole Time Director, denying media reports suggesting a stake sale.

According to the statement, the company had undergone a shareholding change in February 2018 and consequently the current promoters are subject to a lock-in period of five years as stipulated by the regulator.

The company has undergone several rounds of capitalisation thereafter and is financially strong with solvency ratio of 2.65 (as on June 30, 2020) as against required regulatory solvency ratio of 1.5, indicating adequate capital support for planned growth.