Insurance Australia Group Ltd (IAG) on 26 March 2015 announced that it will raise its stake in SBI General Insurance (SBIGI) from 26 percent to 49 percent.
IAG decided to increase its stake in SBIGI in the backdrop of the Insurance Laws (Amendment) Bill, 2015 which was passed in the Parliament in March 2015. The bill seeks to increase foreign investment limit in local insurers to 49 percent from 26 percent.
SBI General Insurance is a joint venture between the State Bank of India and IAG of Australia. It started operations in 2010. This decision of IAG will lead to dilution of SBI’s 76 percent stake in SBI General Insurance to 51 percent.
When: 26 March 2015