Federal Bank is set to strengthen its partnership with Ageas Federal Life Insurance (AFLIC) by increasing its stake in the private life insurer from 26 per cent to 30 per cent. The bank’s board has approved the execution of a binding Memorandum of Understanding (MoU) with Ageas Insurance International NV and AFLIC to acquire an additional 4 per cent equity stake, subject to regulatory approvals and customary conditions.

The acquisition, once completed, will reinforce Federal Bank’s long-term commitment to the life insurance sector, expanding its role in the growing industry. The move also aligns with Ageas Federal Life Insurance’s strategy to strengthen its distribution channels and enhance its presence in India’s evolving insurance landscape.

Commenting on the development, Jude Gomes, Managing Director (MD)and CEO of Ageas Federal Life Insurance, said, “We welcome this step by Federal Bank, which reflects the continued trust and confidence in our partnership and business growth potential. As we progress towards completing this transaction, we remain committed to strengthening our bancassurance-driven model, delivering customer-centric insurance solutions, and reinforcing our presence in India’s dynamic insurance sector.”

The transaction is subject to the execution of a Share Purchase Agreement (SPA) and requisite approvals from regulatory authorities. The development underscores the increasing strategic importance of bancassurance in India’s insurance sector, with Federal Bank further deepening its engagement in life insurance.