Monday, September 26, 2022

IAG considers selling SBI General Insurance stake

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PW Bureau

The Australian group currently holds 26 percent stake of SBI General Insurance, with SBI, India’s largest lender, owning 74 percent

New Delhi: Insurance Australia Group (IAG) is looking at selling its stake in a general insurance joint venture with State Bank of India, according to a report by the Mint. IAG, which has already begun preliminary discussions for the hiring of an investment bank to administer the sale, currently holds 26 percent of stake in SBI General Insurance, with SBI, India’s largest lender, owning 74 percent.

While emails sent to SBI did not receive a response, the Sydney-based IAG refused to comment on its plan to sell SBI’s stake. One source says that IAG may consider selling a share of its stake before a proposed initial share sale.

IAG’s plan to sell a stake in the insurance joint venture comes after SBI sold its 4 percent stake in the insurance company. The sale took place in September when SBI sold its stake to Axis Asset Management Co. Ltd and Premji Invest for Rs 482 crore

IAG’s plan to sell a stake in the insurance joint venture comes after SBI sold its 4 percent stake in the insurance company. The sale took place in September when SBI sold its stake to Axis Asset Management Co. Ltd and Premji Invest for Rs 482 crore. The transaction valued SBI General Insurance at Rs 12,000 crore. While SBI’s stake in the venture dropped to 70 percent after the sale, IAG continued to hold 26 percent.

SBI General Insurance, which began its operations in 2010, sells products in the retail space such as from health, home, travel, and motor insurance, as well as other products such as fire, marine, aviation and liability insurance in the commercial space.

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