Insurance Australia Group (IAG), foreign joint venture partner in SBI General Insurance, proposes to increase its stake from the current 24 per cent 49 per cent.

“IAG is in talks with State Bank of India (SBI) in this regard. The shareholders’ agreement provide for increasing stakes in the company,” said Steve Hollow, Deputy CEO, SBI General Insurance.

The central government recently passed the insurance ordinance allowing foreign direct investment in insurance ventures to increase their stake up to 49 per cent.

Hollow, who was here to announce SBI General’s future plans, said the company is targeting 50 per cent growth next fiscal over the current’s years expected gross premium collection of ₹1,600 crore. Sectors such as auto, marine and fire would be the growth engine, he added.

“We are planning to launch a bunch of new policies in the healthcare segment, which will also grow at a reasonable level,” he said. Besides, it proposes to expand its agent network from the current 6,000 to 15,000 in the next two quarters. “In addition we would also rope in other SBI’s banking subsidiaries to sell our products. This together will increase the market penetration of our products,” he added.

SBI General is yet to start making underwriting profits. “We are still posting underwriting losses, but we hope to achieve break-even by next financial year,” Hollow said.

Published on February 23, 2015