IAG will increase its stake in Indian joint venture SBI General Insurance from 26% to 49%, according to a regulatory filing last week by its partner State Bank of India.

The bank’s executive committee will appoint a valuer to decide the price of shares in the unlisted general insurer, according to overseas media reports.

IAG would not confirm the reports last week. It says it has been trying for some time to raise its stake.

“We have a very close relationship with [the bank],” a spokesman told insuranceNEWS.com.au.

“We have always expressed our interest in increasing our stake to 49% once the laws allowed that.”

Discussions are at an early stage and involve commercial negotiations, the spokesman says.

The bank’s announcement follows the passage this month of a long-delayed bill to let foreign companies increase maximum stakes in insurers from 26% to 49%.