IndiaFirst Life stake sale faces distribution setback. Union Bank of India's exit from corporate agency tie-up with the insurer has delayed BNP Paribas Cardif's acquisition negotiations. Union Bank contributed 25% of new business in FY2025, creating significant uncertainty. The French lender aims to acquire over 26% stake, valuing IndiaFirst at more than twice its embedded value of approximately 5,000-5,200 crore rupees. Bancassurance remains critical, accounting for 76% of individual new business premiums. Bank of Baroda holds 64.98% majority ownership. Sources indicate the delay is temporary, though timelines may extend. IndiaFirst has been diversifying beyond bank-led distribution to build proprietary channels and reduce concentration risks from heavy reliance on two major banking partners for growth sustainability.
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