IAG ups stake in Indian joint venture with SBI

Australian insurer Insurance Australia Group (IAG) is set to up its stake in an insurance joint venture with the State Bank of India (SBI).

The SBI will dilute its stake in SBI General Insurance from 76 percent to 51 percent. AIG’s stake will increase to 49 percent from 26 percent.

In a regulatory filing SBI said that the Executive Committee of the Central Board initiated the process, which includes the appointment of a valuer to facilitate valuation and price discovery.

This follows the passage of a bill which will raise the foreign direct investment (FDI) cap in the insurance sector to 49 percent from 26 percent.