Sompo Japan keen to raise stake in insurance JV

Universal Sompo General Insurance’s Japanese partner, Sompo Japan Insurance, is open to raising its stake up to 49 per cent, an official of the insurance firm said on Friday.

O N Singh, Executive Chairman, Universal Sompo General Insurance, said that if the government raised the foreign investment ceiling for the insurance sector from the present 26 per cent, the firm’s Japanese partner would raise its stake to up to 49 per cent.

Universal Sompo General Insurance is a joint venture of Allahabad Bank, Sompo Japan Insurance, Indian Overseas Bank (IOB), Karnataka Bank and Dabur Investments.

While Sompo Japan holds 26 per cent stake in the venture, Allahabad Bank has a 30 per cent stake, IOB 19 per cent, Karnataka Bank 15 per cent and Dabur Investment the remaining.

Sompo Japan has the first right of refusal to buy Allahabad Bank’s shares.