Indian venture clears final hurdle
IAG has cleared the final hurdle in its general insurance joint venture with the State Bank of India (SBI) following approval by Indian regulators.
The tie-up gives the Australian insurer access to 100 million customers through 11,000 SBI branches.
IAG will take a maximum 26% stake in the general insurance venture under current Indian foreign investment rules, but may increase its stake up to 49% under anticipated changes.
An IAG spokesman told insuranceNEWS.com.au an increase in shareholding would depend on a change to India’s foreign investment rules, “as well as other conditions which will have a bearing on whether or when we exercise our option. We don’t anticipate this will occur prior to 2012.”
The joint venture is expected to begin trading by the second quarter of next year.
The tie-up gives the Australian insurer access to 100 million customers through 11,000 SBI branches.
IAG will take a maximum 26% stake in the general insurance venture under current Indian foreign investment rules, but may increase its stake up to 49% under anticipated changes.
An IAG spokesman told insuranceNEWS.com.au an increase in shareholding would depend on a change to India’s foreign investment rules, “as well as other conditions which will have a bearing on whether or when we exercise our option. We don’t anticipate this will occur prior to 2012.”
The joint venture is expected to begin trading by the second quarter of next year.