Larsen & Toubro (L&T) and Future Generali Insurance (FGI) have decided mutually to call off the discussions around the proposed joint venture. LTGI will continue its focus on expanding its business footprint in the areas of both general and health insurance.

On Mar.26, 2013, L&T announced that their general insurance subsidiary L&T General Insurance (LTGI) was in talks with Future Generali Insurance (FGI) for the formation of a joint venture (JV) that would combine and continue the business of general insurance in India. L&TGI and FGI had entered into a non-binding agreement to jointly examine the terms of a potential transaction. 

L&T General Insurance Company commenced business operations in 2010-11. The company operates out of 17 branches spread over India and earned gross written premium of Rs 2.53 billion during the financial year ending Mar. 31, 2014 indicating a growth of 39% over the previous financial year as against an industry growth of 12% for the same period.

The said premium includes around Rs 2.07 billion from property and casualty insurance and Rs 460 million from health insurance.  

Shares of the company gained Rs 21.85, or 1.65%, to trade at Rs 1,344. The total volume of shares traded was 144,849 at the BSE (12.34 p.m., Tuesday).