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Insurance Australia Group (IAG) is set to exit out of its joint venture in the private sector SBI General Insurance Company.
Two this end, it has entered into a definitive agreement to sell the whole of its 26 per cent stake in SBI General Insurance through two transactions. While Premji Invest will buy 16.01 per cent of its stake, Warburg Pincus Group will acquire a 9.99 interest in the private sector general insurer, according to a company statement on Thursday.
“The transactions are subject to regulatory processes and approvals,” it said.
State Bank of India currently holds 70 per cent stake in the general insurer, which will remain unaffected.
Upon completion of the transaction, Napean Opportunities LLP (an affiliate of Premji Invest) will hold 16.01 per cent stake in SBI General Insurance (SBIG), WP Honey Wheat Investment will hold 9.99 per cent interest, PI Opportunities Fund-1 will hold 2.35 per cent stake and Axis New Opportunities AIF – I will hold 1.65 per cent of the share capital of the company, the statement said.
SBI General Insurance is not listed on the bourses.
Read also: SBI shelves plan to list its general insurance arm
IAG was looking to exit SBIG for some time with its focus on core territories of Australia and New Zealand.
Peter Harmer, Managing Director and Chief Executive Officer, IAG said, “IAG has enjoyed a strong and successful relationship with the State Bank of India since establishing the SBIG joint venture in 2009.”
Dinesh Kumar Khara, Managing Director, SBI , said welcomed Premji Invest and Warburg Pincus as the incoming shareholders in SBIG.
Earlier this year, Warburg Pincus had bought 26 per cent stake in a private sector life insurer—India FirstLife Insurance.
SBI General Insurance started operations in 2010 as a joint venture between SBI and IAG. In 2018-19, its gross written premium grew 33 per cent to Rs 4,717 crore.
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