IAG will initially hold 26% and increases stake to 49% in future
Insurance Australia Group (IAG) has completed its AUD$126m investment in its general insurance joint venture with State Bank of India, SBI General.
The company said that the investment will be funded from internal resources. The capital has been invested directly into the joint venture vehicle and no further capital is expected to be required until at least the fourth year of operation.
The joint venture is expected to commence trading in the first half of CY2010, subject to final approvals from Insurance Regulatory and Development Authority.
IAG said that it will initially hold 26% of the joint venture, the maximum allowable under India’s current foreign investment rules, and has an option to increase its stake to 49% in future, subject to regulatory and other conditions.
IAG has a portfolio of general insurance businesses. It has established brands across its home markets of Australia and New Zealand, a growing presence in Asia, and other specialist underwriting operations.