Chennai, Nov 14 (IANS): Belgium-based Ageas Insurance International N.V. (Ageas) will acquire a 40 per cent stake for Rs 1,520 crore in city-based non-life insurer Royal Sundaram General Insurance Company Ltd, said Sundaram Finance Ltd.

In a statement issued here, Sundaram Finance said the company along with other Indian shareholders has signed an agreement with Ageas to this effect.

Currently, Sundaram Finance Ltd holds 75.90 per cent in Royal Sundaram and proposes to divest 25.90 per cent, thereby retaining 50 per cent of its holding post the divestment.

Some of the existing Indian shareholders will hold the balance 10 per cent in Royal Sundaram.

For the year ended March 31, 2018, Royal Sundaram generated Gross Written Premium of Rs 2,643 crore and achieved a Profit after Tax of Rs 83 crore.

Subject to certain conditions to close, including the approval of the Insurance Regulatory and Development Authority of India and other Regulators, the share purchase transaction is expected to close in the first quarter of 2019.

"For the next phase of growth, we are delighted to be partnering with Ageas, whose global experience, including in several Asian countries, will be an asset. Ageas is unique in its approach of working through local partnerships and joint ventures across Asia and we believe this can create significant value for Royal Sundaram," T.T. Srinivasaraghavan, Managing Director, Sundaram Finance Ltd was quoted as saying in the statement.