Insurance Australia Group to exit SBI General Insurance Company

Insurance Australia Group (IAG) has decided to sell its 26 per cent stake in SBI General Insurance.

IAG will offload the stake in favour of Premji Invest which will control 16.01 per cent interest and Warburg Pincus Group which will hold 9.99 per cent interest.

"Upon completion of the transaction, SBI will continue to hold 70 per cent and Napean Opportunities LLP (an affiliate of Premji Invest) will hold 16.01 per cent stake," said the country's largest lender on Thursday in regulatory filings at stock exchanges.

"The other shareholders will be WP Honey Wheat Investment with 9.99 per cent stake, a subsidiary of Warburg Pincus Group." Besides, PI Opportunities Fund will hold 2.35 per cent stake and Axis New Opportunities 1.65 per cent.

IAG has been part of the joint venture since 2009. SBI said the stake sale will be made via two transactions which will be subject to regulatory processes and approvals.

SBI General's profit after tax dropped to Rs 75 crore in the first quarter of the current financial year compared to Rs 113 crore in Q1 FY19. But the market share increased to 3.11 per cent from 2.7 per cent last year. The insurer collected gross direct premium of Rs 1,277 crore in Q1 FY20, a year-on-year growth of 26.56 per cent.

The company serves three key customer segments: retail (individuals and families), corporate (mid to large size companies) and small and medium enterprises.