QBE group to raise stake in Raheja QBE General Insurance Company

Australia's QBE Group has confirmed it is raising its stake in Indian firm Raheja QBE General Insurance Company to 49 percent.

Previous regulations stated only a maximum 26% participation by a foreign partner in any insurance joint venture (JV) was permitted.

However, these regulations were recently amended, which means the firm has been able to increase its stake.

Praveen Gupta, managing director and chief executive officer, Raheja QBE General Insurance Company, said: “Back in 2007, when QBE entered into a JV agreement with Prism Cement, we expressed our desire to raise our stake to 49% as and when it was allowed. We are excited that this can now happen.”

QBE’s said that the increased shareholding demonstrates its commitment to the Indian non-life insurance market. Some forecasts have suggested this sector could potentially grow from the current $17 billion to as much as $85 billion by 2025.