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Financial services firm Edelweiss Group On Monday announced the divestment of its majority stake in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL), post approval from the Insurance Regulatory and Development Authority of India (IRDAI).

The business will transition to the Gallagher brand in the coming months. Edelweiss Group will focus on growing its life and non-life insurance businesses, which have been among the fastest growing in the industry.

Gallagher and Edelweiss had announced the transaction in July 2021, cementing a partnership that was forged between the two in May 2019, giving clients access to a larger suite of insurance products and services and scaling up the business significantly.

On the development, Edelweiss Group Chairman Rashesh Shah said: "At Edelweiss, we have always been driven by long-term value creation, seeding, nurturing businesses, forging partnerships at the opportune time to build scale. We have enjoyed an excellent relationship with the Gallagher team and we believe that they will add lot more value to the business and give it a global edge."

"This move also 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 pandemic," he added.