India’s Parliament has approved a long-delayed bill to let foreign companies increase stakes in insurers from 26% to 49%.

IAG had already confirmed an intention to raise its investment in its well-established general insurance joint venture with the State Bank of India, SBI General.

A spokesman says IAG is delighted the rule change has finally passed and it is hoped the SBI deal will be completed “sooner rather than later”.

The process of dialling up to 49% had been initiated in anticipation of the legislation.

“We are very confident in the Indian market and the growth opportunities it presents,” the spokesman told insuranceNEWS.com.au.