IAG isn't commenting on reports that Indian regulators want the insurer to feed the investment for its joint venture with State Bank of India through Singapore rather than the tax haven of Mauritius.

"Our investment in India will be directly through one of our Australian entities," an IAG spokesman told insuranceNEWS.com.au.

The company says the joint venture will probably start operating in the first half of next year, and remains subject to further regulatory approvals.

IAG will gain access to 100 million customers through 11,000 State Bank of India branches when the joint venture comes on stream. It is expected to cost IAG about $140 million.

India's Business Standard newspaper report quotes "sources involved with the finalisation of the joint venture" as saying investment through Singapore would still make IAG eligible for tax benefits, but the deal would be more transparent.

It says Indian regulators are demanding transparency, especially considering the deal involves India's largest bank, which is a public sector player.

IAG will take a maximum 26% stake in the venture under current Indian foreign investment rules, but expected changes may open the way for a stake of up to 49%.