IAG has confirmed it is in talks with external parties about selling part or all of its stake in Indian general insurer SBI General.

The group was responding to speculation in the Indian Economic Times that six private equity funds are shortlisted to pick up IAG’s stake. Goldman Sachs is said to be overseeing the process.

“As advised at its 1H19 result…IAG continues to assess options for its joint venture interests in Asia, including its interest in SBI General,” the group says in a statement.

“Discussions have been held with external parties regarding a potential sale of all or part of IAG’s 26% interest in SBIG. There is no certainty that a transaction will occur.”

Following a strategic review of its operations last year, IAG sold its Thailand operations for a $200 million profit and is expecting to sell its Indonesian and Vietnamese interests by the end of this financial year.

The group’s investments in Asia have long been a source of friction with institutional investors who see little upside in Australia’s largest insurer trying to build operations in the region. In 2015 incoming MD Peter Harmer backed away from bullish statements about IAG’s plans for a move into China after investors protested.

The State Bank of India signed a joint venture with IAG in 2008, with the Australian insurer holding a 26% stake in the deal – the maximum foreign investment limit then allowed to insurers.

Despite talk of IAG buying a larger stake in the company – following a 2015 Indian Government decision to allow foreign investment of 49% – it didn’t follow through.

Its former state manager for Victoria and Tasmania Lisa Jeffrey was made Deputy CEO of SBI General and Head of India at the end of 2017.